Artikel

Does government spending crowd out voluntary labor and donations?

Private charitable contributions play an essential role in most economies. From a policy perspective, there is concern that comprehensive government spending might crowd out 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 the causes of crowding out is crucial from a policy perspective, as crowding out represents a hidden cost to public spending and can thus have significant consequences for government policies toward public welfare provision.

Language
Englisch

Bibliographic citation
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2023

Classification
Wirtschaft
National Government Expenditures and Health
Structure, Scope, and Performance of Government
Subject
private philanthropy
time and money donations
government spending
crowding out

Event
Geistige Schöpfung
(who)
Bredtmann, Julia
Martínez Flores, Fernanda
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2023

DOI
doi:10.15185/izawol.299.v2
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Bredtmann, Julia
  • Martínez Flores, Fernanda
  • Institute of Labor Economics (IZA)

Time of origin

  • 2023

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