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Charity and public libraries: Does government funding crowd out donations?

Author

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  • Amir Borges Ferreira Neto

    (Regional Research Institute, West Virginia University)

Abstract

This paper analyzes the determinants of donations to public libraries testing the following hypothesis: Is there a crowd out effect from government funding of public libraries? I look at novel data, the Public Library Survey, and use an unbalanced panel of public libraries across the USA from 2000 to 2013. The results suggest a crowd in effect with an inverted U shape in all levels of government. Local government is associated with 4–6 cents increase in donations, state government with 20–23 cents increase, and federal government with 75 cents to 1 dollar and 33 cents.

Suggested Citation

  • Amir Borges Ferreira Neto, 2018. "Charity and public libraries: Does government funding crowd out donations?," Working Papers Research Paper 2018-7, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2018rp07
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    File URL: https://link.springer.com/article/10.1007/s10824-018-9318-4
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    Cited by:

    1. Amir B. Ferreira Neto & Jennifer Nowicki & Shishir Shakya, 2025. "Do public libraries help mitigate crime? Evidence from Kansas City, MO," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 49(1), pages 141-161, March.
    2. Doris Lilia Andrade Agudelo & Angy Lorena Fernández-Cantero & Dayana Andrea Velásquez-Galeano, 2023. "Efficient Provision of Public Goods: Supply and Demand of Public Libraries in Colombia," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 15(2), pages 307-330.
    3. Rose Anne Devlin & Michela Planatscher, 2025. "Crowding Out of Private Contributions by Government Funding: The Importance of Charitable Activities and Population Served," Working Papers 2506E, University of Ottawa, Department of Economics.
    4. Gayle, Philip, 2024. "The extent to which government grants to nonprofit organizations crowd-out or crowd-in private giving to them: An unresolved debate revisited within a strategic fundraising setting," MPRA Paper 120685, University Library of Munich, Germany.
    5. Amir Borges Ferreira Neto, 2023. "Do public libraries impact local labour markets? Evidence from Appalachia," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(2), pages 216-238, April.
    6. McCannon, Bryan C. & Ferreira Neto, Amir B., 2021. "Charitable giving for cultural goods: Asymmetric gender responses to votes on tax increases," Economics Letters, Elsevier, vol. 204(C).
    7. Brian Garrod & David Dowell, 2020. "The Role of Childhood Participation in Cultural Activities in the Promotion of Pro-Social Behaviours in Later Life," Sustainability, MDPI, vol. 12(14), pages 1-16, July.

    More about this item

    Keywords

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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