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

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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.

Bibliographical metadata

Original languageEnglish
Pages (from-to)191-209
JournalOxford Bulletin of Economics and Statistics
Volume77
Issue number2
DOIs
Publication statusPublished - 5 Jun 2014

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