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American Economic Review: Vol. 97 No. 5 (December 2007)
AER Volume. 97, Issue 5 | 
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AER Forthcoming Articles
Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment
Article Citation
Karlan, Dean, and
John A. List. 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment."
American Economic Review,
97(5): 1774-1793.
DOI: 10.1257/aer.97.5.1774
DOI: 10.1257/aer.97.5.1774
Abstract
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)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (1.03 MB) | Link to Appendix (96.58 KB)
Authors
Karlan, Dean (Yale University and MIT)
List, John A. (University of Chicago)
List, John A. (University of Chicago)
JEL Classifications
D64: Altruism
L31: Nonprofit Institutions; NGOs
L31: Nonprofit Institutions; NGOs
