Subsidy Schemes and Charitable Contributions: A Closer Look
This article replicates and â€œstress testsâ€ 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 â€œconstant (gross) contributionâ€ rule, suggesting that inattention to the subsidiesâ€™ 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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