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

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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. Althoughwe 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," ISER Discussion Paper 1299, Institute of Social and Economic Research, The University of Osaka.
    • Handle: RePEc:dpr:wpaper:1299
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    References listed on IDEAS

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    1. Eckel, Catherine & Grossman, Philip J., 2017. "Comparing rebate and matching subsidies controlling for donors’ awareness: Evidence from the field," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 88-95.
    2. 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.
    3. 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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