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% ordering operators \newcommand{\oleq}{\preceq} \newcommand{\ogeq}{\succeq} % programming and logic operators \newcommand{\dfn}{:=} \newcommand{\assign}{:=} \newcommand{\co}{\ co\ } \newcommand{\en}{\ en\ } % logic operators \newcommand{\xor}{\oplus} \newcommand{\Land}{\bigwedge} \newcommand{\Lor}{\bigvee} \newcommand{\finish}{\Box} \newcommand{\contra}{\Rightarrow \Leftarrow} \newcommand{\iseq}{\stackrel{_?{=}}} % Set theory \newcommand{\symdiff}{\Delta} \newcommand{\setdiff}{\backslash} \newcommand{\union}{\cup} \newcommand{\inters}{\cap} \newcommand{\Union}{\bigcup} \newcommand{\Inters}{\bigcap} \newcommand{\nullSet}{\phi} % graph theory \newcommand{\nbd}{\Gamma} % Script alphabets % For reals, use \Re % greek letters \newcommand{\eps}{\epsilon} \newcommand{\del}{\delta} \newcommand{\ga}{\alpha} \newcommand{\gb}{\beta} \newcommand{\gd}{\del} \newcommand{\gp}{\pi} \newcommand{\gf}{\phi} \newcommand{\gh}{\eta} \newcommand{\gF}{\Phi} \newcommand{\gl}{\lambda} \newcommand{\gm}{\mu} \newcommand{\gn}{\nu} \newcommand{\gr}{\rho} \newcommand{\gs}{\sigma} \newcommand{\gth}{\theta} \newcommand{\gx}{\xi} \newcommand{\gw}{\omega} \newcommand{\sw}{\sigma} \newcommand{\SW}{\Sigma} \newcommand{\ew}{\lambda} \newcommand{\EW}{\Lambda} \newcommand{\Del}{\Delta} \newcommand{\gD}{\Delta} \newcommand{\gG}{\Gamma} \newcommand{\gW}{\Omega} \newcommand{\gS}{\Sigma} \newcommand{\gTh}{\Theta} % Bold english letters. \newcommand{\bA}{\mathbf{A}} \newcommand{\bB}{\mathbf{B}} \newcommand{\bC}{\mathbf{C}} \newcommand{\bD}{\mathbf{D}} \newcommand{\bE}{\mathbf{E}} \newcommand{\bF}{\mathbf{F}} \newcommand{\bG}{\mathbf{G}} \newcommand{\bH}{\mathbf{H}} \newcommand{\bI}{\mathbf{I}} \newcommand{\bJ}{\mathbf{J}} \newcommand{\bK}{\mathbf{K}} \newcommand{\bL}{\mathbf{L}} \newcommand{\bM}{\mathbf{M}} \newcommand{\bN}{\mathbf{N}} \newcommand{\bO}{\mathbf{O}} \newcommand{\bP}{\mathbf{P}} \newcommand{\bQ}{\mathbf{Q}} \newcommand{\bR}{\mathbf{R}} \newcommand{\bS}{\mathbf{S}} \newcommand{\bT}{\mathbf{T}} \newcommand{\bU}{\mathbf{U}} \newcommand{\bV}{\mathbf{V}} \newcommand{\bW}{\mathbf{W}} \newcommand{\bX}{\mathbf{X}} \newcommand{\bY}{\mathbf{Y}} \newcommand{\bZ}{\mathbf{Z}} \newcommand{\bba}{\mathbf{a}} \newcommand{\bbb}{\mathbf{b}} \newcommand{\bbc}{\mathbf{c}} \newcommand{\bbd}{\mathbf{d}} \newcommand{\bbe}{\mathbf{e}} \newcommand{\bbf}{\mathbf{f}} \newcommand{\bbg}{\mathbf{g}} \newcommand{\bbh}{\mathbf{h}} \newcommand{\bbk}{\mathbf{k}} \newcommand{\bbl}{\mathbf{l}} \newcommand{\bbm}{\mathbf{m}} \newcommand{\bbn}{\mathbf{n}} \newcommand{\bbp}{\mathbf{p}} \newcommand{\bbq}{\mathbf{q}} \newcommand{\bbr}{\mathbf{r}} \newcommand{\bbs}{\mathbf{s}} \newcommand{\bbt}{\mathbf{t}} \newcommand{\bbu}{\mathbf{u}} \newcommand{\bbv}{\mathbf{v}} \newcommand{\bbw}{\mathbf{w}} \newcommand{\bbx}{\mathbf{x}} \newcommand{\bby}{\mathbf{y}} \newcommand{\bbz}{\mathbf{z}} \newcommand{\0}{\mathbf{0}} \newcommand{\1}{\mathbf{1}} % Caligraphic english alphabet \newcommand{\cA}{\mathcal{A}} \newcommand{\cB}{\mathcal{B}} \newcommand{\cC}{\mathcal{C}} \newcommand{\cD}{\mathcal{D}} \newcommand{\cE}{\mathcal{E}} \newcommand{\cF}{\mathcal{F}} \newcommand{\cG}{\mathcal{G}} \newcommand{\cH}{\mathcal{H}} \newcommand{\cI}{\mathcal{I}} \newcommand{\cJ}{\mathcal{J}} \newcommand{\cK}{\mathcal{K}} \newcommand{\cL}{\mathcal{L}} \newcommand{\cM}{\mathcal{M}} \newcommand{\cN}{\mathcal{N}} \newcommand{\cO}{\mathcal{O}} \newcommand{\cP}{\mathcal{P}} \newcommand{\cQ}{\mathcal{Q}} \newcommand{\cR}{\mathcal{R}} \newcommand{\cS}{\mathcal{S}} \newcommand{\cT}{\mathcal{T}} \newcommand{\cU}{\mathcal{U}} \newcommand{\cV}{\mathcal{V}} \newcommand{\cW}{\mathcal{W}} \newcommand{\cX}{\mathcal{X}} \newcommand{\cY}{\mathcal{Y}} \newcommand{\cZ}{\mathcal{Z}} % Formatting shortcuts \newcommand{\red}[1]{\textcolor{red}{#1}} \newcommand{\blue}[1]{\textcolor{blue}{#1}} \newcommand{\htext}[2]{\texorpdfstring{#1}{#2}} % Statistics \newcommand{\distr}{\sim} \newcommand{\stddev}{\sigma} \newcommand{\covmatrix}{\Sigma} \newcommand{\mean}{\mu} \newcommand{\param}{\theta} \newcommand{\gthEst}{\hat{\theta}} \newcommand{\ftr}{\phi} \newcommand{\est}[1]{\hat{#1}} % General utility \newcommand{\todo}[1]{\textbf{[TODO]}] \footnote{TODO: #1}} \newcommand{\tbc}{[\textbf{Incomplete}]} \newcommand{\chk}{[\textbf{Check}]} \newcommand{\why}{[\textbf{Find proof}]} \newcommand{\opt}[1]{\textit{#1}} \newcommand{\experience}[1]{[\textbf{Personal Experience}]: #1 \blacktriangle} \newcommand{\pf}[1]{[\textbf{Proof}]: #1 \Box} \newcommand{\core}[1]{\textbf{Core Idea}: #1 \Arrowvert} \newcommand{\example}[1]{\textbf{Example}: #1 \blacktriangle} \newcommand{\error}[1]{\textbf{Error alert}: #1 \triangle} \newcommand{\oprob}{[\textbf{OP}]: } \renewcommand{\~}{\htext{$\sim$}{~}} \DeclareMathOperator*{\argmin}{arg\,min} \DeclareMathOperator*{\argmax}{arg\,max} \)

Individual spending

Conspicuous consumption

This is done mainly for the purpose of increasing one’s status in society (aka ’status signaling’). This is aka ’keeping up with the joneses’.

Green consumption

People might want to similarly enhance status among environmentally conscious people by making conspicuous green choices - even though a less conspicuous investment may have benefited the ecosystem more. Eg: Installing solar panels on street side of the house, Buying the distinctive Toyota Prius rather than other inconspicuous hybrid vehicles around 2010’s.

Donation

This involves donating money for public welfare, without expectation of profit. Effective philanthropy is tightly focused on the outcome; though it often starts out as ’feel-good’ philanthropy where one does not consciously try to maximize the good outcome.

Donations to charitable organizations are often tax exempt.

Some companies match employee donations up to a certain limit.

USA

It does not make sense to worry about tax deductions for charitable contributions, unless they exceed around 5500$ in USA (when one can make itemized deductions). In any case, the organization you donate to must be registered in USA to qualify for tax deduction.

Quality

Parameters

The fraction of money donated going to organizational costs, rather than the poor, varies.

Provably good charities meet certain standards for charity accountability, which includes disclosure of their Tax forms and expenditure details on their website.