Limiting the Number of Charities
CORE Discussion Paper 2006/74
14 Pages Posted: 19 Nov 2006
Date Written: September 2006
Abstract
We consider a model where creating a charity implies a fixed cost and individual contributions depend on how close donors feel with respect to the charity. In that setting we show that there are an optimal number of charities and an optimal rate of subsidization that depend on the set-up cost and on the attachment of donors to charities that share the same values as theirs. We also consider the case of free-entry and compare it with the second-best solution controlling for the number of charities.
Keywords: charities, joy of giving
JEL Classification: L31, H41
Suggested Citation: Suggested Citation
Pestieau, Pierre and Sato, Motohiro, Limiting the Number of Charities (September 2006). CORE Discussion Paper 2006/74, Available at SSRN: https://ssrn.com/abstract=945080 or http://dx.doi.org/10.2139/ssrn.945080
Here is the Coronavirus
related research on SSRN
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.
