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

17 Pages Posted: 20 May 2020

Date Written: February 2020

Abstract

We analyze the effect of public funding on private contributions to 67 nongovernmental 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‐in, crowding‐out, nonprofit organizations, private contributions, public funding

Suggested Citation

de Andres‐Alonso, Pablo and Garcia-Rodriguez, Inigo and Romero‐Merino, M. Elena, The Impact of Public Funding on the Different Types of Private Contributions (February 2020). Financial Accountability & Management, Vol. 36, Issue 1, pp. 33-49, 2020, Available at SSRN: https://ssrn.com/abstract=3601129 or http://dx.doi.org/10.1111/faam.12215

Pablo De Andres‐Alonso (Contact Author)

affiliation not provided to SSRN

No Address Available

Inigo Garcia-Rodriguez

University of Burgos ( email )

C/ Parralillos s/n
Burgos, 09001
Spain

M. Elena Romero‐Merino

University of Burgos

Hospital del Rey, s/n
Burgos, 09001
Spain

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