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Effect of cognitive ability on matching and rebate subsidies

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  • Peng, Hui-Chun

Abstract

This paper conducts laboratory experiments to investigate the effect of cognitive ability on individual charitable behavior under two theoretically equivalent subsidy schemes, matching and rebate subsidy schemes. Experimental results show that whether the subject has high or low cognitive ability, his/her private donation under matching subsidies is significantly higher than that under the theoretically equivalent rebate subsidies. However, an individual with higher cognitive ability is more likely to attain the theoretical equivalence.

Suggested Citation

  • Peng, Hui-Chun, 2020. "Effect of cognitive ability on matching and rebate subsidies," Research in Economics, Elsevier, vol. 74(1), pages 19-25.
    • Handle: RePEc:eee:reecon:v:74:y:2020:i:1:p:19-25
    DOI: 10.1016/j.rie.2019.11.003
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    References listed on IDEAS

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    1. Kawamura, Tetsuya & Ogawa, Kazuhito, 2019. "Cognitive ability and human behavior in experimental ultimatum games," Research in Economics, Elsevier, vol. 73(1), pages 97-106.
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    15. Catherine C. Eckel & Philip J. Grossman, 2006. "Subsidizing Charitable Giving with Rebates or Matching: Further Laboratory Evidence," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 794-807, April.
    16. 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.
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    Cited by:

    1. Ogawa, Kazuhito & Kawamura, Tetsuya & Matsushita, Keiichiro, 2020. "Effects of cognitive ability and age on giving in dictator game experiments," Research in Economics, Elsevier, vol. 74(4), pages 323-335.

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