Artikel

Does government spending crowd out voluntary labor and donations?

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.

Sprache
Englisch

Erschienen in
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2016 ; Bonn: Institute for the Study of Labor (IZA)

Klassifikation
Wirtschaft
Public Goods
Nonprofit Institutions; NGOs; Social Entrepreneurship
Structure, Scope, and Performance of Government
Thema
private philanthropy
time and money donations
government spending
crowding out

Ereignis
Geistige Schöpfung
(wer)
Bredtmann, Julia
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2016

DOI
doi:10.15185/izawol.299
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Bredtmann, Julia
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2016

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