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Does Public Policy Crowd Out Private Contributions to Public Goods?

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Author Info
Karine Nyborg and Mari Rege () (Statistics Norway)

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Abstract

It is sometimes claimed that individuals’ contributions to public goods are not motivated by economic costs and benefits alone, but that people also have a moral or norm-based motivation. A number of studies indicate that such moral or norm-based motivation might be crowded out, or crowded in, by public policy. This paper discusses some models that can yield insight into the interplay between economic and moral or norm-based motivation for voluntary contributions to public goods, and compares their policy implications. We distinguish between four types of models: Altruism models, social norm models, models of commitment and the cognitive evaluation theory.

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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 300.

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Date of creation: Jun 2001
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Handle: RePEc:ssb:dispap:300

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Related research
Keywords: Private provision; altruism; social norms; commitment.;

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Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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  1. Frey, Bruno S., 1993. "Motivation as a limit to pricing," Journal of Economic Psychology, Elsevier, vol. 14(4), pages 635-664, December. [Downloadable!] (restricted)
  2. Lindbeck, Assar, 1997. "Incentives and Social Norms in Household Behavior," American Economic Review, American Economic Association, vol. 87(2), pages 370-77, May. [Downloadable!] (restricted)
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  3. Bernheim, B Douglas, 1986. "On the Voluntary and Involuntary Provision of Public Goods," American Economic Review, American Economic Association, vol. 76(4), pages 789-93, September. [Downloadable!] (restricted)
  4. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-55, September. [Downloadable!] (restricted)
  5. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February. [Downloadable!] (restricted)
  6. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June. [Downloadable!] (restricted)
  7. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-48, February. [Downloadable!] (restricted)
  8. Schram, Arthur, 2000. " Sorting Out the Seeking: The Economics of Individual Motivations," Public Choice, Springer, vol. 103(3-4), pages 231-58, June. [Downloadable!] (restricted)
  9. Frey, Bruno S. & Jegen, Reto, 2000. "Motivation Crowding Theory: A Survey of Empirical Evidence," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  10. Bohnet, Iris & Frey, Bruno S., 1999. "The sound of silence in prisoner's dilemma and dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 43-57, January. [Downloadable!] (restricted)
  11. Kjell Arne Brekke, Snorre Kverndokk and Karine Nyborg, 2000. "An Economic Model of Moral Motivation," Discussion Papers 290, Research Department of Statistics Norway. [Downloadable!]
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  12. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  13. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-87, December. [Downloadable!] (restricted)
  14. Hollander, Heinz, 1990. "A Social Exchange Approach to Voluntary Cooperation," American Economic Review, American Economic Association, vol. 80(5), pages 1157-67, December. [Downloadable!] (restricted)
  15. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June. [Downloadable!] (restricted)
  16. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June. [Downloadable!] (restricted)
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  17. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July. [Downloadable!] (restricted)
  18. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Baron, David P., 2006. "Managerial Contracting and Corporate Social Responsibility," Research Papers 1945, Stanford University, Graduate School of Business. [Downloadable!]
  2. Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2003. "Green consumers and public policy: On socially contingent moral motivation," Memorandum 31/2003, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  3. Mulder, A., 2004. "Does the mixture of policy instruments matter? An empirical test of government support for the private provision of public goods," Research Paper ERS-2004-073-F&A Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  4. Nyborg, Karine, 2008. "I Don't Want to Hear About it: Rational Ignorance among Duty-Oriented Consumers," Memorandum 15/2008, Oslo University, Department of Economics. [Downloadable!]
  5. Uri Gneezy, 2003. "The W effect of incentives," Levine's Bibliography 666156000000000315, UCLA Department of Economics. [Downloadable!]
  6. Bruno S. Frey & Alois Stutzer, 2006. "Environmental Morale and Motivation," IEW - Working Papers iewwp288, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  7. Brekke, Kjell Arne & Nyborg, Karine, 2005. "Moral hazard and moral motivation: Corporate social responsibility as labor market screening," Memorandum 25/2004, Oslo University, Department of Economics. [Downloadable!]
  8. Kipperberg, Gorm & Larson, Douglas, 2005. "Paying For A Public Good In Money Or Time: Is There A Fundamental Difference? An Investigation Of Consumers' Preferences For Community-Wide Recycling," 2005 Annual meeting, July 24-27, Providence, RI 19223, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  9. repec:bep:eapcon:v:5:y:2006:i:1:p:1531-1531 is not listed on IDEAS
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