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

39 Pages Posted: 11 Apr 2011

See all articles by Wiji Arulampalam

Wiji Arulampalam

University of Warwick - Department of Economics; IZA Institute of Labor Economics

Peter Backus

University of Warwick; University of Southampton

John Micklewright

Institute of Education; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Abstract

The empirical literature on the determinants of charities donation income, distinguishing the charitable cause, is small. We extend the literature in several ways. First, we focus on overseas development charities allowing us to give more consideration to the particular characteristics of this cause. Second, we look at the impact of macroeconomic change over a quarter century including changes in household income and in government spending on ODA, as well as 'charity level' variables that earlier authors have considered. Third, we use a general dynamic model and rigorous testing procedures to arrive at our specification. Using a newly assembled long panel of data, we find evidence of a strong, but diminishing fundraising effect. We find no evidence of crowding out by either grants made directly to charities or by changes in the public provision of development funding.

Keywords: overseas development, charitable giving

JEL Classification: L3, D1, D6, F3

Suggested Citation

Arulampalam, Wiji and Backus, Peter and Micklewright, John, Unofficial Development Assistance: A Dynamic Model of Charities' Donation Income. IZA Discussion Paper No. 5616, Available at SSRN: https://ssrn.com/abstract=1806417

Wiji Arulampalam (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
01203 523471 (Phone)
01203 523032 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Peter Backus

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

University of Southampton

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

John Micklewright

Institute of Education ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

HOME PAGE: http://www.ioe.ac.uk/staff/QSSE/QSSE_30.html

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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