Matching Donations Without Crowding Out? Some Theoretical Considerations, a Field, and a Lab Experiment

29 Pages Posted: 15 Mar 2016 Last revised: 3 May 2017

See all articles by Maja Adena

Maja Adena

WZB Berlin Social Science Center

Steffen Huck

University College London - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Date Written: February 2017

Abstract

Is there a way of matching donations that avoids crowding out? We introduce a novel matching method where the matched amount is allocated to a different project, present some simple theoretical considerations that predict reduced crowding out or more crowding in (depending on the degree of substitutability between the two projects) and present evidence from a large-scale natural field experiment and a laboratory experiment. Similar to findings in the literature, conventional matching for the same project results in partial crowding out in the field experiment and, as predicted, crowding out is reduced under the novel matching scheme. The lab experiment provides more fine-tuned evidence for the change in crowding and yields further support for the theory: the novel matching method works best when the two projects are complements rather than substitutes.

Keywords: Charitable giving, Matched fundraising, Natural field experiment

JEL Classification: C93, D64, D12

Suggested Citation

Adena, Maja and Huck, Steffen, Matching Donations Without Crowding Out? Some Theoretical Considerations, a Field, and a Lab Experiment (February 2017). Available at SSRN: https://ssrn.com/abstract=2747943 or http://dx.doi.org/10.2139/ssrn.2747943

Maja Adena (Contact Author)

WZB Berlin Social Science Center ( email )

Reichpietschufer 50
D-10785 Berlin, 10785
Germany

Steffen Huck

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom
+44 207 679 5895 (Phone)
+44 207 916 2774 (Fax)

HOME PAGE: http://www.ucl.ac.uk/~uctpshu/

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
28
Abstract Views
238
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information