Effect of cognitive ability on matching and rebate subsidies

Hui-Chun Peng

Research in Economics, 2020, vol. 74, issue 1, 19-25

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.

Keywords: Cognitive ability; Matching subsidy; Rebate subsidy (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:74:y:2020:i:1:p:19-25

DOI: 10.1016/j.rie.2019.11.003

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