Charitable Giving Responses to Education Budgets

Jonathan Meer and Hedieh Tajali

No 29331, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Do changes in government spending affect voluntary contributions to those recipients? We examine how changes in K-12 education budgets impact donations to teachers using data from DonorsChoose.org, an online crowdfunding platform for public school teachers to raise money. We find a positive correlation between budgets and voluntary contributions when not accounting for their endogeneous relationship. With instrumental variables, we find evidence for crowd-out of private giving, though the magnitudes are small relative to spending and do not meaningfully offset budget changes. These results are driven entirely by teachers’ posting of requests.

JEL-codes: D64 H41 H42 I22 (search for similar items in EconPapers)
Date: 2021-10
New Economics Papers: this item is included in nep-edu and nep-ure
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