ECONOMISTS WEIGH IN ON WHETHER CASH GIFTS ARE THE BEST GIFTS.

ECONOMISTS WEIGH IN ON WHETHER CASH GIFTS ARE THE BEST GIFTS. Here is the full set of responses by distinguished economists to a question on the University of Chicago’s IGM poll which asked whether they agreed or disagreed with the following proposition: “Giving specific presents as holiday gifts is inefficient, because recipients could satisfy their preferences much better with cash.” The question derives from the work of Joel Waldfogel, who has written SCROOGEONOMICS, which argues that people do a better job shopping for themselves; in fact, he estimates that people do about 20 % better. (I have posted on SCROOGEONOMICS several times, including here, because the argument comes up every year around Christmastime.) In the IGM poll, 17% of the economists agree or strongly agree that giving cash is more efficient; 22% are uncertain; and 61% disagree or strongly disagree.