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Subsidy Schemes and Charitable Contributions: A Closer Look

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Author Info
Douglas Davis ()
Edward Millner ()
Robert Reilly ()

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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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File URL: http://hdl.handle.net/10.1007/s10683-005-0867-y
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Publisher Info
Article provided by Springer in its journal Experimental Economics.

Volume (Year): 8 (2005)
Issue (Month): 2 (June)
Pages: 85-106
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
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

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Related research
Keywords: charitable giving; experiment; subsidies;

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.:

  1. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October. [Downloadable!] (restricted)
  2. repec:att:wimass:19199810 is not listed on IDEAS
  3. Andreoni, James & Scholz, John Karl, 1998. "An Econometric Analysis of Charitable Giving with Interdependent Preferences," Economic Inquiry, Oxford University Press, vol. 36(3), pages 410-28, July.
  4. Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
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  5. 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. [Downloadable!] (restricted)
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(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.)

  1. Catherine C. Eckel & Philip J. Grossman, 2006. "Subsidizing charitable contributions: a natural field experiment comparing matching and rebate subsidies," Working Papers 2008-08 Classification-C9, Saint Cloud State University, Department of Economics, revised Dec 2007. [Downloadable!]
    Other versions:
  2. John List, 2008. "Introduction to field experiments in economics with applications to the economics of charity," Experimental Economics, Springer, vol. 11(3), pages 203-212, September. [Downloadable!] (restricted)
  3. Douglas D. Davis, 2006. "Rebate subsidies, matching subsidies and isolation effects," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 13-22, July. [Downloadable!]
    Other versions:
  4. 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. [Downloadable!] (restricted)
  5. Douglas D. Davis & Edward L. Millner, 2004. "Rebates, Matches, and Consumer Behavior," Working Papers 0401, VCU School of Business, Department of Economics. [Downloadable!]
    Other versions:
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