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The ‘crowding-out’ effect of governmental transfers on private charitable contributions

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  • Burton Abrams
  • Mark Schitz

Abstract

The above analysis provides support for the proposition that governmental social-welfare transfers have actually served to attenuate private charitable giving. Our finding of less-than-total crowding out tends to reject both the ultrarational and BGR hypotheses for society as a whole. However, our results do not preclude the possibility that some contributors have been completely crowded out nor that some contributors have been unaffected by increases in governmental transfers. The highly aggregative data used in this study may conceal substantially different crowding-out effects for particular types of charitable contributions. Further investigation using microeconomic or less aggregative data should help to identify the categories of private charitable contributions most affected by the growth of governmental transfers. Copyright Martinus Nijhoff Social Sciences Division 1978

Suggested Citation

  • Burton Abrams & Mark Schitz, 1978. "The ‘crowding-out’ effect of governmental transfers on private charitable contributions," Public Choice, Springer, vol. 33(1), pages 29-39, March.
    • Handle: RePEc:kap:pubcho:v:33:y:1978:i:1:p:29-39
    DOI: 10.1007/BF00123940
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    1. Peltzman, Sam, 1973. "The Effect of Government Subsidies-in-Kind on Private Expenditures: The Case of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 1-27, Jan.-Feb..
    2. Keith M. Carlson & Roger W. Spencer, 1975. "Crowding out and its critics," Review, Federal Reserve Bank of St. Louis, vol. 57(Dec), pages 2-17.
    3. West, E. G., 1975. "Educational slowdown and public intervention in 19th-century England: A study in the economics of bureaucracy," Explorations in Economic History, Elsevier, vol. 12(1), pages 61-87, January.
    4. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    5. Schwartz, Robert A, 1970. "Personal Philanthropic Contributions," Journal of Political Economy, University of Chicago Press, vol. 78(6), pages 1264-1291, Nov.-Dec..
    6. Stephen Long, 1976. "Social pressure and contributions to health charities," Public Choice, Springer, vol. 28(1), pages 55-66, December.
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