Department of Finance
Eli Broad Graduate School of Management
Michigan State University
East Lansing, MI 48824
Institutional Affiliations: Michigan State University and RANEPA, Moscow, Russia
Information about this author at RePEc
NBER Working Papers and Publications
|January 2020||Are Political and Charitable Giving Substitutes? Evidence from the United States|
with Maria Petrova, Ricardo Perez-Truglia, Pinar Yildirim: w26616
We provide evidence that individuals substitute between political contributions and charitable contributions, using micro data from the American Red Cross and Federal Election Commission. First, we find that foreign natural disasters, which are positive shocks to charitable giving, crowd out political giving. Second, we show that political advertisement campaigns, which are positive shocks to political giving, crowd out charitable giving. Our evidence suggests that individuals give to political and charitable causes to satisfy similar needs, and some of the drivers of charitable giving, such as other-regarding preferences, may be driving political giving too.
|September 2007||Social Interactions and Entrepreneurial Activity|
with Mariassunta Giannetti
in Entrepreneurship: Strategy and Structure, Thomas Hellman and Scott Stern, editors
|March 2004||Portfolio Diversification and City Agglomeration|
with William N. Goetzmann, Massimo Massa: w10343
We relate the degree of investor portfolio focus to the broader urban economic context of the household. Using a detailed panel of investors in Sweden over the period 1995 to 2000, we find that the level of investor diversification, as measured by number of stocks in the portfolio and by the average correlation among holdings, is partially explained by city industrial characteristics. We find that rural portfolios are more diversified than urban portfolios and that portfolio diversification is characterized by factors associated with urban growth. We consider a number of theories to explain investor focus, including behavioral biases, real and perceived informational advantage, local social competition and hedging of non-tradable risk. We find little evidence to support social and hedging ...