Unofficial Development Assistance: a model of development charities' donation income
AbstractThe empirical literature on the determinants of charities' donation income, distinguishing the charitable cause, is small. We extend it by paying particular attention to development charities, capturing both charity and donor characteristics in a single framework. Using a newly constructed 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 be the result of omitted variable bias rather than a genuine response of donors to perceived excesses in fundraising expenditure. Our results further suggest that public spending on development may affect private donations for development. We also find a positive spillover effect of fundraising, suggesting that the efforts of one development charity may increase contributions made to other development charities.
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Bibliographic InfoPaper provided by Department of Quantitative Social Science - Institute of Education, University of London in its series DoQSS Working Papers with number 13-14.
Date of creation: 16 Oct 2013
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charitable giving; overseas development;
Find related papers by JEL classification:
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
- D1 - Microeconomics - - Household Behavior
- D6 - Microeconomics - - Welfare Economics
- F3 - International Economics - - International Finance
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