US

Bah, Humbug

Giving specific presents as holiday gifts is inefficient, because recipients could satisfy their preferences much better with cash.

Responses weighted by each expert's confidence

Participant University Vote Confidence Bio/Vote History
Acemoglu
Daron Acemoglu
MIT
Disagree
1
Bio/Vote History
Alesina
Alberto Alesina
Harvard
Strongly Disagree
1
Bio/Vote History
the choice of the gift giver is a signal of intensity of search effiort
Altonji
Joseph Altonji
Yale
Disagree
8
Bio/Vote History
Cash is more efficient in a narrow sense, but holiday gift exchanges are about interpersonal relationships.
Auerbach
Alan Auerbach
Berkeley
Uncertain
5
Bio/Vote History
Clearly true if one ignores the pleasure one may get in choosing or receiving specific gifts. Only in some cases are these factors minimal.
Autor
David Autor
MIT
Disagree
10
Bio/Vote History
Are you serious? Presents serve multiple interpersonal purposes. Revealed preference indicates that income transfer is not the primary one.
Baicker
Katherine Baicker
University of Chicago
Uncertain
7
Bio/Vote History
Depends on goal: may have goal (like create emotional connection through item - as if economists had emotions!) not achievable with cash.
Banerjee
Abhijit Banerjee
MIT
Disagree
7
Bio/Vote History
Giving a present gives one an occssion to think about the recipient. The effort one puts into buying can be an important signal as well.
Bertrand
Marianne Bertrand
Chicago
Disagree
5
Bio/Vote History
Brunnermeier
Markus Brunnermeier
Princeton
Strongly Disagree
9
Bio/Vote History
it's the thought (identifying the right present) that matters! In addition money lacks the surprise element.
Chetty
Raj Chetty
Harvard
Agree
7
Bio/Vote History
Chevalier
Judith Chevalier
Yale
Agree
10
Bio/Vote History
Of course does not consider receiver's joy of giving, etc:
Currie
Janet Currie
Princeton
Disagree
7
Bio/Vote History
Gifts serve many functions such as signalling regard and demonstrating social ties with the recipient. Cash transfers don't do this as well
Cutler
David Cutler
Harvard
Uncertain
1
Bio/Vote History
I don't want to be a scrooge!
Deaton
Angus Deaton
Princeton
Strongly Disagree
10
Bio/Vote History
This is the sort of narrow view that rightly gives economics bad name.
Duffie
Darrell Duffie
Stanford
Disagree
7
Bio/Vote History
A large benefit is the pleasure of choosing something special for the receiver. Maybe one's hand-knit socks are more fun to give than cash!
Edlin
Aaron Edlin
Berkeley
Disagree
9
Bio/Vote History
"It is the thought that counts" has more truth than some allow. Gifts are more than things.
Eichengreen
Barry Eichengreen
Berkeley
Disagree
5
Bio/Vote History
Implications of a specific gift (signal it sends, behavioral impact) may give additional utility to either the giver or receiver.
Einav
Liran Einav
Stanford
Agree
8
Bio/Vote History
Fair
Ray Fair
Yale
Uncertain
5
Bio/Vote History
The act of giving or receiving gifts can add value to the gifts.
Finkelstein
Amy Finkelstein
MIT
Uncertain
6
Bio/Vote History
Goldberg
Pinelopi Goldberg
Yale
Agree
6
Bio/Vote History
Goolsbee
Austan Goolsbee
Chicago
Disagree
10
Bio/Vote History
Instead of proposing to your wife w/diamond ring, you offer a gift card of equal value. Efficient--if you don't count your hospital bills.
Greenstone
Michael Greenstone
University of Chicago
Agree
5
Bio/Vote History
generally agree but exposes neoclassical econ limitations bc it excludes utility from gift giver or recipient choosing/receiving a gift.
Hall
Robert Hall
Stanford
Disagree
8
Bio/Vote History
Giver informs receiver of novel experience. And (John Solow) giver can't enjoy directly, but only with participation of receiver (jewelry)
-see background information here
Hart
Oliver Hart
Harvard
Disagree
10
Bio/Vote History
An assistant might prefer cash. For a friend a present that shows that you have thought about what matters to them might mean much more.
Holmström
Bengt Holmström
MIT
Strongly Disagree
7
Bio/Vote History
Hoxby
Caroline Hoxby
Stanford Did Not Answer Bio/Vote History
Hoynes
Hilary Hoynes
Berkeley
Strongly Agree
10
Bio/Vote History
Judd
Kenneth Judd
Stanford
Disagree
7
Bio/Vote History
Recipients often want to know that the giver spent time thinking about the gift and acquiring it. Giving cash is too easy in their eyes.
Kaplan
Steven Kaplan
Chicago Booth
Agree
7
Bio/Vote History
In some cases, non-pecuniary values are important, but in general, the statement is true.
Kashyap
Anil Kashyap
Chicago Booth
Agree
7
Bio/Vote History
Motivation for the present has to be non-monetary -- but try giving your spouse cash!
Klenow
Pete Klenow
Stanford
Disagree
5
Bio/Vote History
I know the argument (see link), but a costly signal can be worthwhile.
-see background information here
Levin
Jonathan Levin
Stanford Did Not Answer Bio/Vote History
Maskin
Eric Maskin
Harvard
Disagree
8
Bio/Vote History
Only an economist could think like this.
Nordhaus
William Nordhaus
Yale
Disagree
9
Bio/Vote History
Disagree because the value is the thought behind selecting the present, not the cash involved. So true for thoughtless presents.
Obstfeld
Maurice Obstfeld
Berkeley
Uncertain
8
Bio/Vote History
The judgment would seem to depend on the giver's motivation.
Saez
Emmanuel Saez
Berkeley
Uncertain
6
Bio/Vote History
Samuelson
Larry Samuelson
Yale
Strongly Disagree
10
Bio/Vote History
Gift giving is a form of communication. Comparing the gift to what the recepient would purchase with cash misses the esssence of gifts.
Scheinkman
José Scheinkman
Columbia University
Uncertain
5
Bio/Vote History
Schmalensee
Richard Schmalensee
MIT
Disagree
5
Bio/Vote History
Generally, of course. But shopping takes time, and some gifts you would never have shopped for turn out to satisfy unsuspected preferences.
Shapiro
Carl Shapiro
Berkeley
Strongly Disagree
10
Bio/Vote History
Balderdash. This narrow notion of "efficiency" -- and what life is about -- gives economists a bad name. Here's to the winter solstice.
Shimer
Robert Shimer
University of Chicago
Disagree
7
Bio/Vote History
Many reasons why gifts may be better than cash. Signaling thoughtfulness. Specialized knowledge of giver. Gifts from travels...
Shin
Hyun Song Shin
Princeton Did Not Answer Bio/Vote History
Stokey
Nancy Stokey
University of Chicago
Uncertain
10
Bio/Vote History
For many (most?) gifts, "efficiency" is not the point.
Thaler
Richard Thaler
Chicago Booth
Uncertain
3
Bio/Vote History
Is this a trivial price theory quiz or an interesting behavioral question.? To test price theory, try a cash gift next Valentine's day.
Udry
Christopher Udry
Northwestern
Strongly Disagree
10
Bio/Vote History
Bah, humbug. Such a claim takes an oversimplified model too seriously. Gifts can serve many purposes.