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Unofficial Development Assistance: A Model of Development Charities’ Donation Income

Author

Listed:
  • Wiji Arulampalam
  • Peter G. Backus
  • John Micklewright

Abstract

type="main" xml:id="obes12063-abs-0001"> 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.

Suggested Citation

  • Wiji Arulampalam & Peter G. Backus & John Micklewright, 2015. "Unofficial Development Assistance: A Model of Development Charities’ Donation Income," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(2), pages 191-209, April.
    • Handle: RePEc:bla:obuest:v:77:y:2015:i:2:p:191-209
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    File URL: http://hdl.handle.net/10.1111/obes.2015.77.issue-2
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    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics
    • F3 - International Economics - - International Finance

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