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Giving overseas and public policy

Remarkable numbers of people give to overseas development charities. The aim of this paper is to consider how such overseas giving is best modelled and the implications for public policy. Widely used theories of charitable giving, based on warm-glow or the provision of public goods, provide insight but are not fully satisfactory as explanations of giving for the specific purpose of development. Instead, an "identification" approach to individual giving is proposed here that combines the results focus of the public goods formulation with the scale of the warm-glow model. The theoretical model is used to examine the implications for public policy, including the extent to which official aid crowds out private giving and how public policy should take account of private willingness to make charitable transfers overseas.

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File URL: http://www.sciencedirect.com/science/article/B6V76-4V74XJH-1/2/e01df33aa9c879145892516cc426983f
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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 5-6 (June)
Pages: 647-653

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:5-6:p:647-653
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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  1. Indraneel Dasgupta & Ravi Kanbur, 2006. "Should Egalitarians Expropriate Philanthropists?," CEDI Discussion Paper Series 06-11, Centre for Economic Development and Institutions(CEDI), Brunel University.
  2. Todd Sandler & Daniel G. Arce, 2007. "New face of development assistance: public goods and changing ethics," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 527-544.
  3. Kenneth E. Boulding, 1962. "Notes on a Theory of Philanthropy," NBER Chapters, in: Philanthropy and Public Policy, pages 57-72 National Bureau of Economic Research, Inc.
  4. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June.
  5. Diamond, Peter, 2006. "Optimal tax treatment of private contributions for public goods with and without warm glow preferences," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 897-919, May.
  6. William Vickrey, 1962. "One Economist's View of Philanthropy," NBER Chapters, in: Philanthropy and Public Policy, pages 31-56 National Bureau of Economic Research, Inc.
  7. Micklewright, John & Schnepf, Sylke V., 2007. "Who Gives for Overseas Development?," IZA Discussion Papers 3057, Institute for the Study of Labor (IZA).
  8. Cornes, Richard & Sandler, Todd, 1984. "The theory of public goods: non-nash behaviour," Journal of Public Economics, Elsevier, vol. 23(3), pages 367-379, April.
  9. Duncan, Brian, 2004. "A theory of impact philanthropy," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2159-2180, August.
  10. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
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