An Experimental Test Of The Public Goods Crowding-Out Hypothesis
AbstractThis paper presents an experimental test of the proposition that government contributions to public goods, funded by lump-sum taxation, will completely crowd out voluntary contributions. It is found that crowding-out is incomplete and that subjects who are taxed are significantly more cooperative. This is true even though the tax does not affect the Nash equilibrium prediction. This result is taken as evidence for alternative models that assume people experience some private benefit from contributing to public goods. Copyright 1993 by American Economic Association.
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Bibliographic InfoPaper provided by Wisconsin Madison - Social Systems in its series Working papers with number 9006.
Length: 16 pages
Date of creation: 1990
Date of revision:
Contact details of provider:
Postal: UNIVERSITY OF WISCONSIN MADISON, SOCIAL SYSTEMS RESEARCH INSTITUTE(S.S.R.I.), MADISON WISCONSIN 53706 U.S.A.
tests ; public services ; taxation ; goods;
Other versions of this item:
- Andreoni, James, 1993. "An Experimental Test of the Public-Goods Crowding-Out Hypothesis," American Economic Review, American Economic Association, vol. 83(5), pages 1317-27, December.
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