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Charitable Giving Responses to Education Budgets

Author

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  • Jonathan Meer
  • Hedieh Tajali

Abstract

Do changes in government spending affect voluntary contributions to those recipients? We examine how changes in K-12 education budgets impact donations to teachers using data from DonorsChoose.org, an online crowdfunding platform for public school teachers to raise money. We find a positive correlation between budgets and voluntary contributions when not accounting for their endogeneous relationship. With instrumental variables, we find evidence for crowd-out of private giving, though the magnitudes are small relative to spending and do not meaningfully offset budget changes. These results are driven entirely by teachers’ posting of requests.

Suggested Citation

  • Jonathan Meer & Hedieh Tajali, 2021. "Charitable Giving Responses to Education Budgets," NBER Working Papers 29331, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29331
    Note: ED PE
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    File URL: http://www.nber.org/papers/w29331.pdf
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    Cited by:

    1. Krista Ruffini & Orgül Öztürk & Pelin Pekgün, 2023. "In-Kind Government Assistance and Crowd-Out of Charitable Services: Evidence from Free School Meals," CESifo Working Paper Series 10763, CESifo.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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