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Private Philanthropy and the Economics of Public Radio

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  • Arthur C. Brooks

Abstract

Public radio in the United States receives both direct and indirect government funding. Direct subsidies come in the form of lump-sum and matching grants, while indirect subsidies proceed from tax revenues foregone on deductible private donations. Each of these sources of government money impacts charitable giving to public radio. This paper estimates both of these effects, using data on a national sample of public radio stations in the United States from 1990-96. I find that public funding to stations has a positive impact on private giving, but this impact rapidly decreases as the level of government subsidies increases, ultimately becoming negative. The analysis also indicates that increases in state tax rates correspond with higher donation levels. This paper explores the implications of these and other findings for policymakers, public administrators, and nonprofit managers.

Suggested Citation

  • Arthur C. Brooks, 2001. "Private Philanthropy and the Economics of Public Radio," Center for Policy Research Working Papers 41, Center for Policy Research, Maxwell School, Syracuse University.
    • Handle: RePEc:max:cprwps:41
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    File URL: https://surface.syr.edu/cpr/116/
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    References listed on IDEAS

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    1. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
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    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Bruce R. KINGMA & Robert McClelland, 1995. "PUBLIC RADIO STATIONS ARE REALLY, REALLY NOT PUBLIC GOODS: Charitable contributions and impure altruism," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 66(1), pages 65-76, March.
    6. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, September.
    7. Berry, Steven T. & Waldfogel, Joel, 1999. "Public radio in the United States: does it correct market failure or cannibalize commercial stations?," Journal of Public Economics, Elsevier, vol. 71(2), pages 189-211, February.
    8. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1.
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    Cited by:

    1. Kraus, Margit & Stegarescu, Dan, 2005. "Non-Profit-Organisationen in Deutschland: Ansatzpunkte für eine Refom des Wohlfahrtsstaats," ZEW Dokumentationen 05-02, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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