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An Empirical Test of Neutrality and the Crowding-Out Hypothesis

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  • Brunner, Eric J

Abstract

This paper tests P. G. Warr's neutrality hypothesis that the voluntary provision of a public good is independent of the distribution of income. Specifically, the author tests the null hypothesis of neutrality against the alternative that total contributions to a public good will be larger the less equally income is distributed. To test this hypothesis, a new data set is constructed by merging data on total voluntary contributions to individual public radio stations with 1990 Census data on the income distribution in each station's listening area. The author finds that voluntary contributions increase as income inequality rises. Copyright 1997 by Kluwer Academic Publishers

Suggested Citation

  • Brunner, Eric J, 1997. "An Empirical Test of Neutrality and the Crowding-Out Hypothesis," Public Choice, Springer, vol. 92(3-4), pages 261-279, September.
    • Handle: RePEc:kap:pubcho:v:92:y:1997:i:3-4:p:261-79
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    Cited by:

    1. Hisahiro Naito, 2015. "Provision of Household Public Goods and the Household Income Distribution," Tsukuba Economics Working Papers 2015-004, Faculty of Humanities and Social Sciences, University of Tsukuba.
    2. Agathe Rouaix & Charles Figuières & Marc Willinger, 2015. "The trade-off between welfare and equality in a public good experiment," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(3), pages 601-623, October.
    3. Huseyin Yildirim & Alvaro Name Correa, 2011. "A Theory of Charitable Fund-Raising with Costly Solicitations," Levine's Working Paper Archive 786969000000000222, David K. Levine.
    4. Ken Yamada & Hisahiro Naito, 2014. "Neutrality Theorem Revisited: An Empirical Examination of Household Public Goods Provision," Tsukuba Economics Working Papers 2014-005, Faculty of Humanities and Social Sciences, University of Tsukuba.

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