Substitutes or complements? The relationship between the donation of money and time: Disaggregated analysis.

Abstract

This paper analyzes aggregated and disaggregated level of relationship between donations of money and time. By using Feldmans (2010) methodology with 2011 PSID data, the aggregated result shows that two altruistic behaviors are substitutes. However, in the disaggregated level, in secular industry and religious industry, this paper finds a different relationship: While donations of time and money are substitutes for secular organizations, they are neither substitutes nor complements for religious organizations. This paper also finds that there is positive effect of price of monetary donation on volunteering which occurs outside the change of relative price. Since this effect is larger than the negative effect of relative price across aggregated level and disaggregated level, previous literature interpreted their coefficient of tax price on volunteering as complementary relationship.