In a series of recent experiments (Davis, Millner and Reilly, 2005, Eckel and Grossman, 2003, 2005a-c, 2006), matching subsidies generate significantly higher charity receipts than do theoretically equivalent rebate subsidies. This paper reports a laboratory experiment conducted to examine whether the higher receipts are attributable to a relative preference for matching subsidies or to an ‘isolation effect’ (McCaffery and Baron, 2003, 2006). Some potential policy implications of isolation effects on charitable contributions are also considered.
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Paper provided by VCU School of Business, Department of Economics in its series Working Papers with number
0604.
Length: 22 pages Date of creation: Jun 2006 Date of revision: Publication status: Published in Judgment and Decision-Making, 1, pages 13-22 Handle: RePEc:vcu:wpaper:0604
Find related papers by JEL classification: C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior D64 - Microeconomics - - Welfare Economics - - - Altruism H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
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