Donations for overseas development: evidence from a panel of UK charities
Donations for overseas development: evidence from a panel of UK charities
We model the determinants of donations made to UK overseas development charities using panel data on charities’ donation income covering a 25 year period. The paper starts by reviewing relevant theory and previous empirical work on donations to UK charities before outlining a framework in which donations are a function of fundraising, government grants, total household income, inequality in household income, disasters, Official Development Assistance, and unobserved fixed characteristics of charities. Models are estimated by the within groups estimator and also by Generalised Method of Moments (GMM). When using the GMM approach, fundraising and government grants are allowed to be endogenous. Fundraising has a powerful effect. Government grants appear to crowd in rather than crowd out donations. No impact is found from ODA. The hypothesis of a unitary income elasticity for donations cannot be rejected. Results are compared with those for non-development charities.
charitable donations, overseas development, panel data
Southampton Statistical Sciences Research Institute, University of Southampton
Arulampalam, W.
9613fa20-4cb7-454a-b162-2f3aec05c099
Backus, P.G.
3809f0a4-8a37-4071-91a0-97d4922806a5
Micklewright, J.
203a2a32-d6fa-4f88-9bac-7d476abd4656
27 March 2009
Arulampalam, W.
9613fa20-4cb7-454a-b162-2f3aec05c099
Backus, P.G.
3809f0a4-8a37-4071-91a0-97d4922806a5
Micklewright, J.
203a2a32-d6fa-4f88-9bac-7d476abd4656
Arulampalam, W., Backus, P.G. and Micklewright, J.
(2009)
Donations for overseas development: evidence from a panel of UK charities
(S3RI Applications & Policy Working Papers, A09/02)
Southampton, UK.
Southampton Statistical Sciences Research Institute, University of Southampton
30pp.
Record type:
Monograph
(Working Paper)
Abstract
We model the determinants of donations made to UK overseas development charities using panel data on charities’ donation income covering a 25 year period. The paper starts by reviewing relevant theory and previous empirical work on donations to UK charities before outlining a framework in which donations are a function of fundraising, government grants, total household income, inequality in household income, disasters, Official Development Assistance, and unobserved fixed characteristics of charities. Models are estimated by the within groups estimator and also by Generalised Method of Moments (GMM). When using the GMM approach, fundraising and government grants are allowed to be endogenous. Fundraising has a powerful effect. Government grants appear to crowd in rather than crowd out donations. No impact is found from ODA. The hypothesis of a unitary income elasticity for donations cannot be rejected. Results are compared with those for non-development charities.
Text
s3ri-workingpaper-A09-02.pdf
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Published date: 27 March 2009
Keywords:
charitable donations, overseas development, panel data
Identifiers
Local EPrints ID: 65908
URI: http://eprints.soton.ac.uk/id/eprint/65908
PURE UUID: eab630b7-a926-4d52-a662-43b2c009c60f
Catalogue record
Date deposited: 30 Mar 2009
Last modified: 13 Mar 2024 18:02
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Contributors
Author:
W. Arulampalam
Author:
P.G. Backus
Author:
J. Micklewright
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