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Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding
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Scharf, Kimberley A. (2014) Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding. Journal of Public Economics, Volume 114 . pp. 50-57. doi:10.1016/j.jpubeco.2013.10.002 ISSN 0047-2727.
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Official URL: http://dx.doi.org/10.1016/j.jpubeco.2013.10.002
Abstract
We show that warm-glow motives in provision by competing suppliers can lead to inefficient charity selection. In these situations, discretionary donor choices can promote efficient charity selection even when provision outcomes are non-verifiable. Government funding arrangements, on the other hand, face verification constraints that make them less flexible relative to private donations. Switching from direct grants to government subsidies for private donations can thus produce a positive pro-competitive effect on charity selection, raising the value of charity provision per dollar of funding.
Item Type: | Journal Article | ||||||||
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Journal or Publication Title: | Journal of Public Economics | ||||||||
Publisher: | Elsevier | ||||||||
ISSN: | 0047-2727 | ||||||||
Official Date: | 2014 | ||||||||
Dates: |
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Volume: | Volume 114 | ||||||||
Page Range: | pp. 50-57 | ||||||||
DOI: | 10.1016/j.jpubeco.2013.10.002 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access |
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