Hostname: page-component-7b9c58cd5d-hpxsc Total loading time: 0 Render date: 2025-03-15T05:54:21.815Z Has data issue: false hasContentIssue false
  • English
  • Français

Subsidy Schemes and Charitable Contributions: A Closer Look

Published online by Cambridge University Press:  14 March 2025

Douglas D. Davis ,
Edward L. Millner  and
Robert J. Reilly
Douglas D. Davis*
Affiliation:
Department of Economics, Virginia Commonwealth University, Richmond VA 23284-4000, USA
Edward L. Millner*
Affiliation:
Department of Economics, Virginia Commonwealth University, Richmond VA 23284-4000, USA
Robert J. Reilly*
Affiliation:
Department of Economics, Virginia Commonwealth University, Richmond VA 23284-4000, USA
*
email: [email protected]
email: [email protected]
email: [email protected]
Get access Rights & Permissions [Opens in a new window]

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.

Keywords

charitable givingexperimentsubsidies

JEL classification

D64: Altruism • Philanthropy • Intergenerational Transfers C91: Laboratory, Individual Behavior H24: Personal Income and Other Nonbusiness Taxes and Subsidies
Type
Research Article
Information
Experimental Economics , Volume 8 , Issue 2 , June 2005 , pp. 85 - 106
Copyright
Copyright © 2005 Economic Science Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Andreoni, J. and Miller, J. (2002). “Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism.” Econometrica. 70, 737–757.CrossRefGoogle Scholar
Andreoni, J. and Scholz, J.K. (1998). “An Econometric Analysis of Charitable Giving with Interdependent Preferences.” Economic Inquiry. 36, 410–428.CrossRefGoogle Scholar
Andreoni, J. and Vesterlund, L. (2001). “Which is the Fair Sex? Gender Differences in Altruism.” Quarterly Journal of Economics. 116, 293–312.CrossRefGoogle Scholar
Davis, D. and Millner, E. (2005). “Rebates, Matches, and Consumer Behavior.” Manuscript, Southern Economic Journal (forthcoming).Google Scholar
Eckel, C. and Grossman, P. (2003). “Rebate vs. Matching: Does How We Subsidize Charitable Contributions Matter?” Journal of Public Economics. 87, 681–701.CrossRefGoogle Scholar
Eckel, C. and Grossman, P. (2000). “Volunteers and Pseudo-Volunteers: The Effect of Fecruitment Method on Subjects’ Behavior in Experiments.” Experimental Economics. 3, 107–120.CrossRefGoogle Scholar
Eckel, C. and Grossman, P. (1998). “Are Women Less Selfish than Men?: Evidence from Dictator Experiments.” The Economic Journal. 108, 726–735.CrossRefGoogle Scholar
Eckel, C. and Grossman, P. (1996). “Altruism in Anonymous Dictator Games.” Games and Economic Behavior. 16, 181–191.CrossRefGoogle Scholar
Feldstein, M. and Clotfelter, C. (1976). “Tax Incentives and Charitable Contributions in the United States.” Journal of Public Economics. 5, 1–26.CrossRefGoogle Scholar