dc.description.abstract |
This paper seeks to further understand how government spending impacts private giving
to charitable organizations. It considers giving and spending in the United States
in 2008 with a focus on government spending on education, welfare, healthcare, and
hospitals. Government spending is looked at at the state and local levels. The results
indicate that the impact of government spending depends not only on the category of
spending, but also on the income level of the giver. Increased welfare spending is
shown to cause incomplete crowding-out across all income groups. Results consistently
show education spending to cause crowding-out as well. The impact of both healthcare
and hospital spending is more ambiguous, with differing results for different government
levels (state and local) and income brackets.
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