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Revisiting the Price Elasticity of Charitable Giving: Meta-Analysis of Tax Incentives and Matching Donations

Author

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  • Gwen-Jiro Clochard
  • Shubham Dey
  • Shusaku Sasaki
  • Taisuke Imai

Abstract

This paper presents the first quantitative meta-analysis of the price elasticity of charitable giving under both rebate and matching schemes. We compile 151 elasticity estimates from 33 experimental studies and synthesize them using random-effects and multi-level models. Charitable giving is highly price-responsive: the pooled meta-analytic mean elasticity of total donations is -1.25, indicating that lowering the effective price of giving substantially increases charitable revenue. Although we observe considerable between-study heterogeneity and some evidence of publication bias, bias-adjusted estimates remain negative. Furthermore, elasticity is substantially more negative under matching (-1.98) than under rebate (-0.87), contradicting the theoretical prediction of equivalence but aligning with the original experimental findings in this literature. The rebate-matching difference is attenuated when moving from laboratory to field settings, although it persists.

Suggested Citation

  • Gwen-Jiro Clochard & Shubham Dey & Shusaku Sasaki & Taisuke Imai, 2025. "Revisiting the Price Elasticity of Charitable Giving: Meta-Analysis of Tax Incentives and Matching Donations," CESifo Working Paper Series 12310, CESifo.
    • Handle: RePEc:ces:ceswps:_12310
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    References listed on IDEAS

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    1. T.D. Stanley & Hristos Doucouliagos, 2010. "Picture This: A Simple Graph That Reveals Much Ado About Research," Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 170-191, February.
    2. Raphael Epperson & Christiane Reif, 2019. "Matching Subsidies And Voluntary Contributions: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 33(5), pages 1578-1601, December.
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    13. 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.
    14. 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.
    15. Shusaku Sasaki & Hirofumi Kurokawa & Fumio Ohtake, 2022. "An experimental comparison of rebate and matching in charitable giving: The case of Japan," The Japanese Economic Review, Springer, vol. 73(1), pages 147-177, January.
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