Public Spending and Volunteering: "The Big Society", Crowding Out, and Volunteering Capital
AbstractThe current British Government's "Big Society" plan is based on the idea that granting more freedom to local communities and volunteers will compensate for a withdrawal of public agencies and spending. This idea is grounded on a widely held belief about the relationship between government and volunteering: a high degree of government intervention will cause a crowding out of voluntary activity. Up to now, however, the crowding out hypothesis has hardly been supported by any empirical evidence or solid theoretical foundations. We develop a simple theoretical model to predict how fiscal policy aÂ¤ects the individual decision to volunteer or not. The predictions of the model are tested through the econometric analysis of two survey data sets, and interpretative analysis of narratives of local volunteers and public officials. Contrary to conventional wisdom, our results suggest that volunteering, by the individuals in the actively working population, declines when government intervention is decreased.
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Bibliographic InfoPaper provided by Durham University Business School in its series Working Papers with number 2011_09.
Date of creation: 19 Mar 2011
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volunteering; labor supply; public goods; altruism;
Other versions of this item:
- Bartels, Koen & Cozzi, Guido & Mantovan, Noemi, 2011. "Public Spending and Volunteering: "The Big Society", Crowding Out, and Volunteering Capital," MPRA Paper 29730, University Library of Munich, Germany.
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
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