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

19 Pages Posted: 4 Mar 2015

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

Date Written: April 2015

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.

Suggested Citation

Arulampalam, Wiji and Backus, Peter and Micklewright, John, Unofficial Development Assistance: A Model of Development Charities’ Donation Income (April 2015). Oxford Bulletin of Economics and Statistics, Vol. 77, Issue 2, pp. 191-209, 2015, Available at SSRN: https://ssrn.com/abstract=2573402 or http://dx.doi.org/10.1111/obes.12063

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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