Using Donor Preferences in Evaluating Public Expenditures: A Suggested Procedure

Gregory B. Christainsen
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Gregory B. Christainsen: California State University, Hayward

Public Finance Review, 1983, vol. 11, issue 3, 283-398

Abstract: This article provides a means of assessing the contribution of public expenditures to allocative efficiency, given the preferences of those who make charitable contributions. A test statistic is derived, which, when compared to the actual volume of government subsidies received by enterprises, indicates whether they are over- or under-subsidized. The statistic is couched in terms of parameters for which empirical estimates can be made. Employing existing estimates of these parameters, the use of such a statistic is then illustrated with reference to public expenditures for rehabilitation facilities in which disabled persons perform remunerative work—sheltered workshops.

Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:11:y:1983:i:3:p:283-398

DOI: 10.1177/109114218301100302

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