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.

Language
Englisch

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

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

Event
Geistige Schöpfung
(who)
Bredtmann, Julia
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

DOI
doi:10.15185/izawol.299
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

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

Time of origin

  • 2016

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