| Publications [#239266] of Huseyin Yildirim
Journal Articles
- with Krasteva, S; Yildirim, H, (Un)Informed charitable giving,
Journal of Public Economics, vol. 106
(October, 2013),
pp. 14-26, Elsevier BV, ISSN 0047-2727 [doi]
(last updated on 2025/04/11)
Abstract: Evidence suggests little informed giving. To understand this behavior, we examine voluntary provision of a discrete public good with independent private values that can be ascertained at a cost. We find that an individual who considers a smaller contribution is less likely to learn her value, and thus the percentage of informed giving diminishes as the population grows. We also find that a direct grant to the charity exacerbates crowding-out by discouraging information acquisition whereas a matching grant increases donations by encouraging it. We further show that with costly information, a (first-order) stochastic increase in values can decrease donations; and that facilitating private acquisition of information can be a better fund-raising strategy than directly supplying it. © 2013 Elsevier B.V.
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