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Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment Author info | Abstract | Publisher info | Download info | Related research | Statistics Dean Karlan
John A. List
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We conducted a natural field experiment to further our understanding of the economics of charity. Using direct mail solicitations to over 50,000 prior donors of a nonprofit organization, we tested the effectiveness of a matching grant on charitable giving. We find that the match offer increases both the revenue per solicitation and the response rate. Larger match ratios (i.e., $3:$1 and $2:$1) relative to a smaller match ratio ($1:$1) had no additional impact, however. The results provide avenues for future empirical and theoretical work on charitable giving, cost-benefit analysis, and the private provision of public goods. (JEL D64, L31)
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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 97 (2007)
Issue (Month): 5 (December)
Pages: 1774-1793
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Handle: RePEc:aea:aecrev:v:97:y:2007:i:5:p:1774-1793Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: John A. List & David Lucking-Reiley, 2002.
"The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign ,"
Journal of Political Economy ,
University of Chicago Press, vol. 110(1), pages 215-233, February.
[Downloadable!] (restricted)
Other versions: Lankford, Hamilton & Wyckoff, James, 1992.
"Primary and secondary school choice among public and religious alternatives ,"
Economics of Education Review ,
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Laffont, Jean-Jacques, 1975.
"Macroeconomic Constraints, Economic Efficiency and Ethics: An Introduction to Kantian Economics ,"
Economica ,
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Vesterlund, Lise, 2003.
"The informational value of sequential fundraising ,"
Journal of Public Economics ,
Elsevier, vol. 87(3-4), pages 627-657, March.
[Downloadable!] (restricted)
David C. Ribar & Mark O. Wilhelm, 2002.
"Altruistic and Joy-of-Giving Motivations in Charitable Behavior ,"
Journal of Political Economy ,
University of Chicago Press, vol. 110(2), pages 425-457, April.
[Downloadable!] (restricted)
Other versions: Kahneman, Daniel & Knetsch, Jack L., 1992.
"Valuing public goods: The purchase of moral satisfaction ,"
Journal of Environmental Economics and Management ,
Elsevier, vol. 22(1), pages 57-70, January.
[Downloadable!] (restricted)
Kingma, Bruce Robert, 1989.
"An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions ,"
Journal of Political Economy ,
University of Chicago Press, vol. 97(5), pages 1197-1207, October.
[Downloadable!] (restricted)
Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006.
"Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 121(2), pages 747-782, May.
[Downloadable!] (restricted)
Other versions: Steinberg, Richard S, 1987.
"Voluntary Donations and Public Expenditures in a Federal System ,"
American Economic Review ,
American Economic Association, vol. 77(1), pages 24-36, March.
Sugden, Robert, 1984.
"Reciprocity: The Supply of Public Goods through Voluntary Contributions ,"
Economic Journal ,
Royal Economic Society, vol. 94(376), pages 772-87, December.
[Downloadable!] (restricted)
Randolph, William C, 1995.
"Dynamic Income, Progressive Taxes, and the Timing of Charitable Contributions ,"
Journal of Political Economy ,
University of Chicago Press, vol. 103(4), pages 709-38, August.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Stephan Meier, 2006.
"Do subsidies increase charitable giving in the long run?: matching donations in a field experiment ,"
Working Papers
06-18, Federal Reserve Bank of Boston.
[Downloadable!]
Other versions: Douglas D. Davis, 2006.
"Rebate Subsidies, Matching Subsidies and Isolation Effects ,"
Working Papers
0604, VCU School of Business, Department of Economics.
[Downloadable!]
Jeffrey R. Kling, 2007.
"Methodological Frontiers of Public Finance Field Experiments ,"
NBER Working Papers
12931, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
List, John A. & Reiley, David, 2008.
"Field Experiments in Economics: Palgrave Entry ,"
IZA Discussion Papers
3273, Institute for the Study of Labor (IZA).
[Downloadable!]
Rondeau, Daniel & List, John A., 2008.
"Matching and Challenge Gifts to Charity: Evidence from Laboratory and Natural Field Experiments ,"
IZA Discussion Papers
3278, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: Ronald J. Baker II & James M. Walker & Arlington W. Williams, 2006.
"Matching Contributions and the Voluntary Provision of a Pure Public Good: Experimental Evidence ,"
Caepr Working Papers
2006-007, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington, revised Dec 2007.
[Downloadable!]
Nava Ashraf & James Berry & Jesse M. Shapiro, 2007.
"Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia ,"
NBER Working Papers
13247, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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