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Unofficial Development Assistance: A Model of Development Charities’ Donation Income
Author(s) -
Arulampalam Wiji,
Backus Peter G.,
Micklewright John
Publication year - 2015
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12063
Subject(s) - spillover effect , donation , economics , crowds , unitary state , crowding out , income elasticity of demand , public economics , demographic economics , labour economics , economic growth , monetary economics , microeconomics , political science , law , computer security , computer science
The empirical literature on the determinants of charities’ donation income, distinguishing the charitable cause, is small. We consider the case of development charities specifically. Using a 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 simply be the product of omitted variable bias. Our results further suggest that public spending on development crowds in private donations for development. We find a positive spillover effect of fundraising, suggesting the efforts of one development charity may increase contributions to other development charities.