Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115883
Authors: 
Bittschi, Benjamin
Duppel, Saskia
Year of Publication: 
2015
Series/Report no.: 
ZEW Discussion Papers 15-058
Abstract: 
Using the introduction of the euro as a natural experiment, we provide economy-wide evidence for money illusion based on declared donations from German administrative income tax data. Our results suggest a magnitude of the money illusion effect between 2.4% and 7.6%. Compared to previous studies on money illusion in the course of the euro currency changeover this effect size is significantly lower. We trace this back to the more comprehensive donation data in our study compared to hitherto studied face-to-face collections, which makes our results less prone to "power of the ask" and social pressure effects.
Subjects: 
money illusion
euro introduction
charitable giving
natural experiment
JEL: 
D12
E03
E40
Document Type: 
Working Paper

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