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Charitable giving has become increasingly important in achieving common prosperity, and individual charitable donations have gradually increased in China. This paper utilizes data from the China Family Panel Studies (CFPS) 2018 and the Digital Financial Inclusion Index to explore how digital finance impacts individuals' charitable giving behavior in the context of common prosperity. Our empirical studies suggest that digital finance could promote the amount of individual charitable giving and the likelihood of donation behavior. Furthermore, heterogeneity studies show that digital finance increases the amount of charitable giving by residents in rural areas, the eastern region, and those who receive government subsidies more significantly. The mechanism behind this is that digital finance promotes charitable giving by increasing residents' income, income volatility, and internet usage. Based on these conclusions, we provide policy recommendations to achieve common prosperity through the use of digital finance and charitable giving. • This study analyzes the impact of digital finance on individual charitable giving. • The development of digital finance can promote individual charitable giving significantly. • The impact of digital finance on individual charitable giving shows significant heterogeneity. [ABSTRACT FROM AUTHOR]

Ex post moral hazard, the additional healthcare utilization induced by health insurance, can be decomposed into an efficient portion generated by the income effect and an inefficient portion caused by the substitution effect, which has been discussed theoretically, but few studies have provided evidence of the efficient moral hazard. In 2016, the Chinese government launched the consolidation of urban and rural resident health insurance at the national level. After the consolidation, insurance benefits for nearly 800 million rural residents got improved. This paper uses a nationally-representative sample of 30,972 individuals from the China Health and Retirement Longitudinal Study (2011–2018) and adopts a 2-step empirical approach with the difference-in-differences method and the fuzzy regression discontinuity design to estimate the efficient moral hazard in the consolidation among rural residents. We find that the price shock contained in the consolidation increases inpatient care utilization, and the corresponding price elasticity is between −0.68 and −0.62. Further analysis shows that the efficient moral hazard resulting in welfare gains accounts for 43.33%–66.36% of the additional healthcare utilization. These findings highlight the necessity of evaluating the efficient moral hazard when analyzing the cost-benefit of health insurance reform. • We provide rare evidence of the efficient moral hazard effect in health insurance. • We focus on low-income groups from developing countries. • We use a 2-step empirical approach to estimate the efficient moral hazard effect. • The efficient moral hazard generated by income effect accounts for 43.33%–66.36%. [ABSTRACT FROM AUTHOR]