Unofficial Development Assistance: A Model of Development Charities’ Donation Income |
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| Authors: | Wiji Arulampalam Peter G Backus John Micklewright |
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| Institution: | 1. Department of Economics, University of Warwick, Coventry CV4 7AL, UK;2. Oxford University Centre for Business Taxation, Said Business School, Oxford;3. IZA, Bonn, Germany;4. Department of Economics, University of Manchester, Manchester M13 9PL, UK;5. Institut d'Economia de Barcelona (IEB), Barcelona, Spain;6. Institute of Education, University of London, London WC1H 0AL, UK |
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| Abstract: | 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. |
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