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

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Author Info

  • Arulampalam, Wiji

    ()
    (University of Warwick)

  • Backus, Peter G.

    ()
    (University of Barcelona)

  • Micklewright, John

    ()
    (Institute of Education, University of London)

Abstract

The empirical literature on the determinants of charities donation income, distinguishing the charitable cause, is small. We extend the literature in several ways. First, we focus on overseas development charities allowing us to give more consideration to the particular characteristics of this cause. Second, we look at the impact of macroeconomic change over a quarter century including changes in household income and in government spending on ODA, as well as 'charity level' variables that earlier authors have considered. Third, we use a general dynamic model and rigorous testing procedures to arrive at our specification. Using a newly assembled long panel of data, we find evidence of a strong, but diminishing fundraising effect. We find no evidence of crowding out by either grants made directly to charities or by changes in the public provision of development funding.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5616.

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Length: 46 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5616

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Keywords: overseas development; charitable giving;

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