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Subsidy Schemes and Charitable Contributions: A Closer Look

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Author Info

  • Douglas Davis

    ()

  • Edward Millner

    ()

  • Robert Reilly

    ()

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. Copyright Springer Science + Business Media, Inc. 2005

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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 8 (2005)
Issue (Month): 2 (June)
Pages: 85-106

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Handle: RePEc:kap:expeco:v:8:y:2005:i:2:p:85-106

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Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: charitable giving; experiment; subsidies;

References

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  1. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
  2. Andreoni,J. & Vesterlund,L., 1998. "Which is the fair sex? : Gender differences in altruism," Working papers 10, Wisconsin Madison - Social Systems.
  3. Catherine Eckel & Philip Grossman, 2000. "Volunteers and Pseudo-Volunteers: The Effect of Recruitment Method in Dictator Experiments," Experimental Economics, Springer, vol. 3(2), pages 107-120, October.
  4. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
  5. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
  6. Andreoni, James & Scholz, John Karl, 1998. "An Econometric Analysis of Charitable Giving with Interdependent Preferences," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 410-28, July.
  7. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
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Citations

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Cited by:
  1. Catherine Eckel & Philip Grossman, 2008. "Subsidizing charitable contributions: a natural field experiment comparing matching and rebate subsidies," Experimental Economics, Springer, vol. 11(3), pages 234-252, September.
  2. Alvin Etang & David Fielding & Stephen Knowles, 2011. "What Sort of People Vote Expressively?," Working Papers 1101, University of Otago, Department of Economics, revised Feb 2011.
  3. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Institute of Transportation Studies, Working Paper Series qt02n9j6cv, Institute of Transportation Studies, UC Davis.
  4. Rigdon, Mary L. & Levine, Adam Seth, 2009. "The Role of Expectations and Gender in Altruism," MPRA Paper 19372, University Library of Munich, Germany.
  5. Douglas D. Davis & Edward L. Millner, 2005. "Rebates, Matches, and Consumer Behavior," Southern Economic Journal, Southern Economic Association, vol. 72(2), pages 410–421, October.
  6. John List, 2008. "Introduction to field experiments in economics with applications to the economics of charity," Artefactual Field Experiments 00085, The Field Experiments Website.
  7. Neslihan Uler, 2011. "Public goods provision, inequality and taxes," Experimental Economics, Springer, vol. 14(3), pages 287-306, September.
  8. Douglas D. Davis, 2006. "Rebate Subsidies, Matching Subsidies and Isolation Effects," Working Papers 0604, VCU School of Business, Department of Economics.
  9. Catherine C. Eckel & Philip J. Grossman, 2006. "Subsidizing Charitable Contributions in the Field: Evidence from a Non-Secular Charity," Development Research Unit Working Paper Series archive-44, Monash University, Department of Economics.
  10. Catherine Eckel & Philip Grossman, 2005. "Subsidizing charitable contributions: A field test comparing matching and rebate subsidies," Framed Field Experiments 00145, The Field Experiments Website.
  11. Chavanne, David & McCabe, Kevin & Paganelli, Maria Pia, 2011. "Whose money is it anyway? Ingroups and distributive behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 77(1), pages 31-39, January.
  12. Crumpler, Heidi & Grossman, Philip J., 2008. "An experimental test of warm glow giving," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1011-1021, June.
  13. Catherine C. Eckel & Philip J. Grossman, 2006. "Do Donors Care about Subsidy Type? An Experimental Study," Development Research Unit Working Paper Series archive-10, Monash University, Department of Economics.
  14. Stephan Meier, 2005. "Do subsidies increase charitable giving in the long run? Matching donations in a field experiment," Natural Field Experiments 00308, The Field Experiments Website.
  15. Saez, Emmanuel, 2007. "Details Matter: The Impact of Presentation and Information on the Take-up of Financial Incentives for Retirement Saving," CEPR Discussion Papers 6386, C.E.P.R. Discussion Papers.
  16. Mealem, Yosef & Siniver, Erez & Yaniv, Gideon, 2012. "Patient compliance, physician empathy and financial incentives within a principal-agent framework," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 827-830.
  17. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Resource and Energy Economics, Elsevier, vol. 31(3), pages 221-238, August.

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