Does government spending crowd out voluntary labor and donations?

Julia Bredtmann

IZA World of Labor, 2016, No 299, 299

Abstract: Private charitable contributions play an essential role in most economies. Despite the existence of welfare states, people contribute money and supply volunteer labor to charity. From a policy perspective, there is concern that comprehensive government spending might crowd out these private charitable donations. If perfect crowding out occurs, then every dollar spent by the government will lead to a one-for-one decrease in private spending, leaving the total level of welfare unaltered. Understanding the magnitude and causes of crowding out is crucial, as it represents a hidden cost to public spending and can thus have significant impacts on public welfare.

Keywords: private philanthropy; time and money donations; government spending; crowding out (search for similar items in EconPapers)
JEL-codes: H11 H41 L31 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Does government spending crowd out voluntary labor and donations? (2023)
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