Unofficial Development Assistance: A Model of Development Charities' Donation Income

The empirical literature on the determinants of charities’ donation income, distinguishing the charitable cause, is small. We consider the case of development charities specifically. Using a panel covering a quarter of a century, we observe a strong fundraising effect and a unitary household income...

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Bibliographic Details
Published in:Oxford bulletin of economics and statistics 2015-04, Vol.77 (2), p.191-209
Main Authors: Arulampalam, Wiji, Backus, Peter G., Micklewright, John
Format: Article
Language:English
Subjects:
Assistance
Charities
Charity
Development
Donations
Family income
Fund raising
Household income
Income elasticity
Price elasticity
Public expenditure
Studies
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Summary:The empirical literature on the determinants of charities’ donation income, distinguishing the charitable cause, is small. We consider the case of development charities specifically. Using a panel covering a quarter of a century, we observe a strong fundraising effect and a unitary household income elasticity. We find evidence that the conventionally identified ‘price’ effect may simply be the product of omitted variable bias. Our results further suggest that public spending on development crowds in private donations for development. We find a positive spillover effect of fundraising, suggesting the efforts of one development charity may increase contributions to other development charities.
ISSN:0305-9049
1468-0084
DOI:10.1111/obes.12063