A Note on the Theory of Charitable Fund‐raising: The Role of Refunds
Open accessAbstract
Andreoni (1998, Journal of Political Economy106, 1186–1213) shows that a small amount of seed money from the government can generate substantial additional private donations toward the provision of a public good, when there is a threshold level of provision below which no benefits are achieved. We argue that Andreoni's solution can be extended to a mechanism where refunds are possible. We then argue that a greater “bang per buck” may be achieved if the seed money is targeted to cover the administrative costs of providing refunds.
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The experiment was not designed to test Pecorino and Temimi's theory directly because it had no zero-seed-money treatment.
“(Admittedly, our experiment was not designed to test their theory directly, since we do not include a treatment with zero seed money.)”
From The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign (2002) · cites this paper as Pecorino and Temimi (2001)
Our results suggest that Pecorino and Temimi's example may have little empirical relevance.
“Our results, that seed money has a much greater effect on contributions than refunds, suggest that their example may not have much empirical relevance.”
From The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign (2002) · cites this paper as Pecorino and Temimi (2001)
Pecorino and Temimi also observe that seed money may be useful in practice to cover the administrative costs of processing refunds.
“However, they also observe that seed money might be useful in practice for covering the administrative costs of processing a refund.”
From The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign (2002) · cites this paper as Pecorino and Temimi (2001)
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List, J. A., & Lucking‐Reiley, D. (2002) · Journal of Political Economy · doi:10.1086/324392 · Cited by 560 · see citing works
- Authors
- Pecorino, P., & Temimi, A.
- Affiliations
- University of Alabama (US)
- Corresponding author
- Pecorino, Paul
- Venue
- Journal of Public Economic Theory
- Publisher
- Wiley
- Published
- 2001-07
- Volume
- 3
- Issue
- 3
- Pages
- 341-345
- ISSN
- 1097-3923 (ISSN-L)
- 1467-9779
- OpenAlex
- W2007686639
- Cited by
- 3
- References
- 0
- Citations by year
- 2018: 1
- FWCI
- 2.75
- Type
- journal article
- Language
- en
- Open access
- green
- papers.ssrn.com
- Locations
- Journal of Public Economic Theory (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Policies and Impacts
- Social Sciences › Safety Research › Experimental Behavioral Economics Studies
- Keywords
- charity fundraising, refunds, seed money, public goods provision, private donations, government subsidies, administrative costs
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