Effect of cognitive ability on matching and rebate subsidies |
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| Affiliation: | 1. Department of Economics, Management and Institutions (DEMI), University of Naples “Federico II”, Via Cintia 21, Naples 80126, Italy;2. Department of Economics, Business and Statistics (SEAS), University of Palermo, Italy;1. London School of Economics, United Kingdom;2. Paris School of Economics, France;3. Universit''e Paris 1 Panth''eon Sorbonne, France |
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| 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. |
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