The Impact of Public Funding on the Different Types of Private Contributions

Forthcoming, Financial Accountability & Management

Posted: 30 Jul 2019

Date Written: May 2, 2019

Abstract

We analyze the effect of public funding on private contributions to 67 non-governmental development organizations (NGDOs) in Spain from 2006 to 2011. Previous literature gives theoretical explanations for both the crowding-in and the crowding-out effects, while the empirical evidence presents different realities. In this study, we find a partial crowding-out effect (€1.00 of public funding reduces private contributions by €0.43) by using generalized method of moments estimators. However, this overall effect does not hold when analyzing the influence that different sources of public funds have on each type of private contribution.

Keywords: crowding-out, crowding-in, public funding, private contributions, nonprofit organizations

JEL Classification: M4, L31

Suggested Citation

de Andrés-Alonso, Pablo and Garcia-Rodriguez, Inigo and Romero-Merino, M. Elena, The Impact of Public Funding on the Different Types of Private Contributions (May 2, 2019). Forthcoming, Financial Accountability & Management, Available at SSRN: https://ssrn.com/abstract=3427076

Inigo Garcia-Rodriguez (Contact Author)

University of Burgos ( email )

C/ Parralillos s/n
Burgos, 09001
Spain

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