Macroeconomic uncertainty has been shown to affect a range of outcomes at both the firm and household level. Yet, the effect of macroeconomic uncertainty on charitable giving and related pro-social behaviors remains an open question. This talk reports on an ongoing research program designed to explore whether and how uncertainty about future wealth shapes individual level gifts of money and time. Rather than presenting finished results, I will open my laptop and walk through work in progress. I will begin by presenting a theoretical model of charitable giving by a donor facing uncertain future wealth. I will then summarize preliminary findings from a set of empirical projects utilizing both naturally occurring and experimental data to explore the link between macroeconomic (or policy) uncertainty and measures of pro-social behavior including gifts of money and time. In doing so, I will present findings suggesting that increased ambiguity serves to crowd-out pro-social behavior – especially amongst pessimistic individuals and “reluctant” donors. The aim of the talk is to highlight open questions and discuss next steps for the research agenda.
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