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The deadweight loss of christmas - Reply

Author

Listed:
  • Birg, Laura
  • Pommeranz, Simon
Abstract
In this paper, we study the welfare effects of Christmas presents with a focus on the effect of presents for gift-givers. Based on a survey among students at the University of Göttingen, Germany, we find that the vast majority of gift-givers prefers in-kind gifts compared to gifts of money. The average present in our survey has a price of 36 Euro and results in a "giver's surplus" of 10 Euro. This indicates a welfare gain of approximately 143% from the average giver's perspective. The welfare gain for presents to friends and partners is lower than for presents to close family members. Our empirical analysis shows a negative effect of a present's price on the welfare gain for gift-givers.

Suggested Citation

  • Birg, Laura & Pommeranz, Simon, 2018. "The deadweight loss of christmas - Reply," University of Göttingen Working Papers in Economics 361, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:361
    as

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    References listed on IDEAS

    as
    1. Laura Birg & Anna Goeddeke, 2016. "Christmas Economics—A Sleigh Ride," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1980-1984, October.
    2. Ellingsen, Tore & Johannesson, Magnus, 2011. "Conspicuous generosity," Journal of Public Economics, Elsevier, vol. 95(9), pages 1131-1143.
    3. Waldfogel, Joel, 1993. "The Deadweight Loss of Christmas," American Economic Review, American Economic Association, vol. 83(5), pages 1328-1336, December.
    4. Prendergast, Canice & Stole, Lars, 2001. "The non-monetary nature of gifts," European Economic Review, Elsevier, vol. 45(10), pages 1793-1810, December.
    5. Solnick, Sara J & Hemenway, David, 1996. "The Deadweight Loss of Christmas: Comment," American Economic Review, American Economic Association, vol. 86(5), pages 1299-1305, December.
    6. John List & Jason Shogren, 1998. "The Deadweight Loss from Christmas: Comment," Artefactual Field Experiments 00531, The Field Experiments Website.
    7. Bauer Thomas K. & Schmidt Christoph M., 2012. "WTP vs. WTA: Christmas Presents and the Endowment Effect," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(1), pages 4-11, February.
    8. Joel Waldfogel, 2002. "Gifts, Cash, and Stigma," Economic Inquiry, Western Economic Association International, vol. 40(3), pages 415-427, July.
    9. List, John A & Shogren, Jason F, 1998. "The Deadweight Loss of Christmas: Comment," American Economic Review, American Economic Association, vol. 88(5), pages 1350-1355, December.
    10. Principe, Kristine E. & Eisenhauer, Joseph G., 2009. "Gift-giving and deadweight loss," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 215-220, March.
    11. Waknis, Parag & Gaikwad, Ajit, 2006. "The Deadweight Loss of Diwali," MPRA Paper 52883, University Library of Munich, Germany, revised Jul 2011.
    12. John L. Solow, 1993. "Is it Really the thought that Counts?," Rationality and Society, , vol. 5(4), pages 506-517, October.
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    More about this item

    Keywords

    presents; gift-giving; Christmas; welfare;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • Z1 - Other Special Topics - - Cultural Economics

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