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Do public grants to American theatres crowd-out private donations?

Borgonovi, Francesca (2006) Do public grants to American theatres crowd-out private donations? Public Choice, 126 (3-4). pp. 429-451. ISSN 0048-5829

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This paper examines the relationship between public support and private donations by disaggregating the crowding effect into two components; one determined by level of public support and one determined by changes in public support levels. The analysis of a panel of American non-profit theatres shows that the crowding effect induced by the level of public support takes an inverted U shape: at low levels public support crowds-in private donations while at higher levels it displaces them. The change in total public support in the past year produces a constant crowding-in effect on the level of private donations. The paper finally illustrates how federal and state support have a crowding-in effect at all levels, while local support has a similar impact to total public support.

Item Type: Article
Official URL:
Additional Information: © 2006 Springer Netherlands
Library of Congress subject classification: J Political Science > JF Political institutions (General)
Sets: Departments > Social Policy
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
Date Deposited: 30 Jul 2009 13:44

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