People tend to contribute to a charity only when they are asked to. Although this so-called 'power of asking' is a well-known technique among fundraisers, the existing literature does not pay much attention to the role of donation requests in charitable giving. We estimate the causal effects of charitable solicitations on both the propensity to give and the amount of charitable contributions using a unique data set, which was designed to measure the giving behavior in the United States. In order to address the endogeneity of the donation requests due to non-random solicitation of charitable donors, we link this data set to IRS data on charitable organizations and the 2000 Census and propose identifying instruments. After controlling for the endogeneity, we find that people are both more likely to contribute to a charity and also donate more when they are asked to. This effect is robust under different specifications and with different sets of instruments and is much larger compared with the estimates of univariate models. Furthermore, we argue that some identifiable characteristics of individuals are associated with the higher probability of being solicited. In particular, we find some evidence that income, age, education, and race play significant roles in explaining the selection of potential charitable donors.
Aims
To investigate the relationship between legalization of Sunday alcohol sales and alcohol consumption in the United States.
Design
State-level per capita consumption of beer, wine, and spirits was analyzed using difference-in-differences econometric methods.
Setting
United States.
Participants
5 treatment states that repealed their laws restricting Sunday alcohol sales during 1990–2007 and 12 control states that retained their Sunday alcohol laws during the same period.
Measurements
Outcome measures are state-level per capita consumption of overall alcohol, beer, wine, and spirits.
Findings
Among the states that legalized Sunday sales of alcoholic beverages, Delaware, Pennsylvania, and New Mexico experienced significant increases in overall alcohol consumption (P<0.05). However, the effect of the legalization of Sunday alcohol sales in Massachusetts and Rhode Island on per capita alcohol consumption was insignificant (P=0.964 and P=0.367).
Conclusions
Three out of five states in the USA that repealed their laws restricting Sunday sale of alcoholic beverages during 1990–2007, experienced significant increases in per capita alcohol consumption. This finding implies that increased alcohol availability leads to an increase in alcohol consumption.
How do charitable donors respond to the third‐party ratings that signal the quality of charities? I investigate this question using a novel data set from Charity Navigator, which provides quality ratings for 5,400 charities. Because Charity Navigator prominently displays a charity's star rating which is assigned based on its overall rating, one can identify the causal impact of a one star increase in ratings on charitable contributions with a regression discontinuity framework that exploits the threshold values of the overall ratings. I find that in general, the third‐party ratings have a minor and often insignificant impact on charitable contributions received by charities. However, for relatively small charities, a higher rating leads to an increase in charitable contributions received. In particular, for these charities, I find that a one star increase in ratings is associated with a 19.5% increase in the amount of charitable contributions received. This result is robust under alternative model specifications and highlights the role of the third‐party ratings in not‐for‐profit markets.
Underage drinkers often use false identification to purchase alcohol or gain access into bars. In recent years, several states have introduced laws that provide incentives to retailers and bar owners who use electronic scanners to ensure that the customer is 21 years or older and uses a valid identification to purchase alcohol. This paper is the first to investigate the effects of these laws using confidential data from the National Longitudinal Survey of Youth, 1997 Cohort (NLSY97). Using a difference-in-differences methodology, I find that the false ID laws with scanner provision significantly reduce underage drinking, including up to a 0.22 drink decrease in the average number of drinks consumed by underage youth per day. This effect is observed particularly in the short-run and more pronounced for non-college students and those who are relatively younger. These results are also robust under alternative model specifications. The findings of this paper highlight the importance of false ID laws in reducing alcohol consumption among underage youth.
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