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Unofficial Development Assistance: a model of development charities' donation income

Wiji Arulampalam (), Peter Backus and John Micklewright ()

No 13-14, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: The empirical literature on the determinants of charities' donation income, distinguishing the charitable cause, is small. We extend it by paying particular attention to development charities, capturing both charity and donor characteristics in a single framework. Using a newly constructed 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 be the result of omitted variable bias rather than a genuine response of donors to perceived excesses in fundraising expenditure. Our results further suggest that public spending on development may affect private donations for development. We also find a positive spillover effect of fundraising, suggesting that the efforts of one development charity may increase contributions made to other development charities.

Keywords: charitable giving; overseas development (search for similar items in EconPapers)
JEL-codes: L3 D1 D6 F3 (search for similar items in EconPapers)
Date: 2013-10-16
New Economics Papers: this item is included in nep-nps
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Related works:
Journal Article: Unofficial Development Assistance: A Model of Development Charities’ Donation Income (2015) Downloads
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