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Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment Author info | Abstract | Publisher info | Download info | Related research | Statistics Dean Karlan
John A. List
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We conducted a natural field experiment to further our understanding of the economics of charity. Using direct mail solicitations to over 50,000 prior donors of a nonprofit organization, we tested the effectiveness of a matching grant on charitable giving. We find that the match offer increases both the revenue per solicitation and the response rate. Larger match ratios (i.e., $3:$1 and $2:$1) relative to a smaller match ratio ($1:$1) had no additional impact, however. The results provide avenues for future empirical and theoretical work on charitable giving, cost-benefit analysis, and the private provision of public goods. (JEL D64, L31)
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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 97 (2007)
Issue (Month): 5 (December)
Pages: 1774-1793
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Handle: RePEc:aea:aecrev:v:97:y:2007:i:5:p:1774-1793Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: John A. List & David Lucking-Reiley, 2002.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Daniel Rondeau & John A. List, 2008.
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Rondeau, Daniel & List, John A., 2008.
"Matching and Challenge Gifts to Charity: Evidence from Laboratory and Natural Field Experiments ,"
IZA Discussion Papers
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Experimental Economics ,
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List, John A. & Reiley, David, 2008.
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"Rebate Subsidies, Matching Subsidies and Isolation Effects ,"
Working Papers
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Other versions: Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2008.
"Is a Donor in Hand Better than Two in the Bush? Evidence from a Natural Field Experiment ,"
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Nava Ashraf & James Berry & Jesse M. Shapiro, 2007.
"Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia ,"
NBER Working Papers
13247, National Bureau of Economic Research, Inc.
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