Matching Donations Without Crowding Out? Some Theoretical Considerations, A Field, And A Lab Experiment

Adena, Maja; Huck, Steffen, (2017). Matching Donations Without Crowding Out? Some Theoretical Considerations, A Field, And A Lab Experiment. Journal Of Public Economics, 148, , 32–42.

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Discussion

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Matching donations, while common in practice, has been shown to cause partial crowding out.
Simple theoretical considerations suggest that using matching funds for an alternative project may improve outcomes.
Crowding out will be reduced if the second project is a substitute to the first and even more if it is a complement.
Results from a field experiment indicate that crowding out can be reduced if matching funds are used for an alternative project.
Our laboratory experiment further confirms the superior performance of using matching funds for a complementary project.


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