Subsidy Schemes and Charitable Contributions: A Closer Look

Douglas D. Davis · Edward L. Millner · Robert J. Reilly

93 citations0/0 files storedExperimental Economics

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Experimental Behavioral Economics Studies Nonprofit Sector and Volunteering Decision-Making and Behavioral Economics

Abstract

Abstract This article replicates and “stress tests” a recent finding by Eckel and Grossman (2003) that matching subsidies generate substantially higher Charity Receipts than theoretically comparable rebate subsidies. In a first replication treatment, we show that most choices are consist with a “constant (gross) contribution” rule, suggesting that inattention to the subsidies’ differing net consequences may explain the higher revenues elicited with matching subsidies. Results of additional treatments suggest that (a) the charity dimension of the decision problems has little to do with the result, and (b) extra information regarding the net consequences of decisions reduces but does not eliminate the result.

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References

2002Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism 2001Which is the Fair Sex? Gender Differences in Altruism 1996Altruism in Anonymous Dictator Games 1998Are Women Less Selfish Than Men?: Evidence From Dictator Experiments 2003Rebate versus matching: does how we subsidize charitable contributions matter?1976Tax incentives and charitable contributions in the United States 2000Volunteers and Pseudo-Volunteers: The Effect of Recruitment Method in Dictator Experiments 2005Rebates, Matches, and Consumer Behavior

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