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A Diagrammatic Demonstration of Public Crowding-Out of Private Contributions to Public Goods

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  • Dennis Coates

Abstract

A diagrammatic device is presented for teaching crowding-out in the provision of poor relief and public goods. It builds on the notiOn of Pareto-optimal income redistribution. The diagram shows how governmental attempts to redistribute income, or provide public services, crowd-out voluntary private efforts on a dollar-for-dollar basis.

Suggested Citation

  • Dennis Coates, 1996. "A Diagrammatic Demonstration of Public Crowding-Out of Private Contributions to Public Goods," The Journal of Economic Education, Taylor & Francis Journals, vol. 27(1), pages 49-58, January.
  • Handle: RePEc:taf:jeduce:v:27:y:1996:i:1:p:49-58
    DOI: 10.1080/00220485.1996.10844894
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    References listed on IDEAS

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    1. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
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    4. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, April.
    5. Kingma, Bruce Robert, 1989. "An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1197-1207, October.
    6. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
    7. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    8. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    9. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-598, September.
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    Cited by:

    1. Andries Richter & Stijn Reinhard, 2023. "How does less public spending affect the motivation of citizens to contribute to nature conservation?," Oxford Economic Papers, Oxford University Press, vol. 75(4), pages 1093-1104.

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