Crowding-out (-in) Effects of Subsidy Schemes on Individual Donations: An Experimental Study
We conduct a laboratory experiment to investigate whether the rebate and matching subsidy schemes cause crowding-out or crowding-in effects (reductions or increases in amount donated) on individual net donations. We find that when the rebate subsidy scheme is implemented, it does not result in crowd...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2020-05-01
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| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | https://www.cambridge.org/core/product/identifier/S1930297500007154/type/journal_article |
| Summary: | We conduct a laboratory experiment to investigate whether the rebate and matching subsidy schemes cause crowding-out or crowding-in effects (reductions or increases in amount donated) on individual net donations. We find that when the rebate subsidy scheme is implemented, it does not result in crowding-out or crowding-in effects on individual net donations. However, when the matching subsidy scheme is implemented, it encourages individuals to donate more and generates crowding-in effects on individual net donations. |
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| ISSN: | 1930-2975 |