IDEAS home Printed from
   My bibliography  Save this article

The Impact Of Government Funding On Private Contributions To Nonprofit Performing Arts Organizations


  • Thomas More Smith


ABSTRACT**: This paper tests the crowding‐out hypothesis for a balanced panel of nonprofit performing arts organizations between 1998 and 2003. This research uses a number of model specifications and estimating techniques to appropriately capture the relationship between government grants and private donations. Under alternative specifications, the relationship between government grants and private donations suggests crowding‐in between $0.14 and $1.15. The crowd‐in relationship does change according to art type: symphony orchestras and music companies experience a modest crowd‐in while dance and ballet companies experience a small crowd‐out. Although the crowd‐in falls to zero under the strictest condition, there is a lack of evidence of crowd‐out for nonprofit performing arts organizations as a group.

Suggested Citation

  • Thomas More Smith, 2007. "The Impact Of Government Funding On Private Contributions To Nonprofit Performing Arts Organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(1), pages 137-160, March.
  • Handle: RePEc:bla:annpce:v:78:y:2007:i:1:p:137-160
    DOI: 10.1111/j.1467-8292.2007.00329.x

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Achyut Kafle & Stephen K. Swallow & Elizabeth C. Smith, 2015. "Does Public Funding Affect Preferred Tradeoffs and Crowd-In or Crowd-Out Willingness to Pay? A Watershed Management Case," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(3), pages 471-495, March.
    2. Angela Besana & Annamaria Esposito, 2017. "Memory, Marketing and Economic Performances in Usa Symphony Orchestras and Opera Houses," European Journal of Economics and Business Studies Articles, European Center for Science Education and Research, vol. 3, EJES Sept.
    3. Angela Besana & Annamaria Esposito, 2019. "Fundraising, social media and tourism in American symphony orchestras and opera houses," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(2), pages 137-144, April.
    4. Lauren Schmitz, 2012. "Do Cultural Tax Districts Buttress Revenue Growth for Budding Arts Organizations?," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2012-1, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:annpce:v:78:y:2007:i:1:p:137-160. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.