Joint Crowdout: An Empirical Study of the Impact of Federal Grants on State Government Expenditures and Charitable Donations / Lawrence B. Lindsey, Richard Steinberg.

Format:

Book

Author/Creator:

Lindsey, Lawrence B.

Contributor:

National Bureau of Economic Research.

Steinberg, Richard.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3226.

NBER working paper series no. w3226

Language:

English

Subjects (All):

Crowding out (Economics).

Nonprofit organizations--Finance.

Nonprofit organizations.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Joint Crowdout

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1990.

Cambridge, Massachusetts : National Bureau of Economic Research, 1990.

Summary:

We estimate the effect of exogenous federal expenditure cutbacks on state social service expenditures and on charitable donations. In the process, we also estimate tax and income effects and explore the impact of community environment and "need" variables. Data consist of a unique three-year panel of aggregate itemized giving by state and income class and government expenditures by state. Our results confirm the 'flypaper effect' of federal grants on state spending and show statistically significant but partial crowdout of charitable donations. The flypaper effects appears to dominate the crowdout of donations, so that federal grants are especially productive of overall social service expenditures. Finally, we find that the state's poverty rate is a particularly strong and positive determinant of charitable giving.

Notes:

Print version record

January 1990.