Subsidizing Charitable Giving with Rebates or Matching: Further Laboratory Evidence

15 Pages Posted: 17 May 2011  

Catherine C. Eckel

Texas A&M University

Philip J. Grossman

Monash University - Department of Economics

Date Written: April 1, 2006

Abstract

We examine two different ways to subsidize charitable giving: by a rebate (returning a portion of the donation to the giver) or by a match (adding additional donations to the giver's donation). In previous experimental research, we have shown that participants give more to charity under the match than under an equivalent rebate. The previous within-subject experimental design required participants to make a series of decisions under both types of subsidy. Each decision consisted of an allocation of an endowment between the subject and a charity chosen by the subject from a specified list. This article examines whether that result is an artifact of the previous within-subjects design: subjects may have failed to fully distinguish the two types of subsidy. In the current article, we report results from a between-subjects design, where participants are required to make only one type of decision – involving rebates or involving matching subsidies. Our results confirm previous findings.

JEL Classification: C91, D64

Suggested Citation

Eckel, Catherine C. and Grossman, Philip J., Subsidizing Charitable Giving with Rebates or Matching: Further Laboratory Evidence (April 1, 2006). Southern Economic Journal, Vol. 72, No. 4, pp. 794-807, 2006. Available at SSRN: https://ssrn.com/abstract=1843464

Catherine C. Eckel (Contact Author)

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

Philip J. Grossman

Monash University - Department of Economics ( email )

Wellington Road
Clayton, 3800
Australia
61399020052 (Phone)

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