GenBio2 - Lesson 1 - Introduction to Genetics.pptx
Government Expenditures and Philanthropic Donations: Exploring Crowding-out with Cross-Country Data
1. Government Expenditures and Philanthropic Donations:
Exploring Crowding-Out with Cross-Country Data
Arjen de Wit Vrije Universiteit Amsterdam
Michaela Neumayr WU Vienna
Pamala Wiepking Erasmus University Rotterdam
Femida Handy University of Pennsylvania
45th ARNOVA Annual Conference
Washington D.C., USA
November 18, 2016
3. The crowding-out hypothesis
“For every welfare state, if social obligations become
increasingly public, then its institutional arrangements
crowd out private obligations or make them at least no
longer necessary”
(Van Oorschot and Arts 2005: 2)
Alexis de Tocqueville
1840
Robert Nisbet
1953
Milton Friedman
1962
12. Cross-country comparison
Individual International Philanthropy Database (IPD)
The Matthew Effect in
Philanthropy: How Philanthropic
Structure Enables Philanthropic
Giving
Sat, November 19, 12:15 to
1:45pm, Thornton C
18. Multilevel regression model (1)
p(Y)ij / (1 – p(Y)ij)
= β0 + uj + β1Gj + … + εij
Probability that respondent i in country j donates
uj is the country-specific intercept
Gj is government expenditures in country j
εij is the error term for each observation
Controls: GDP per capita (L2), age, education, gender,
marital status, income (L1)
19. Multilevel regression model (2)
ln(Yij)
= β0 + uj + β1Gj + … + εij
Natural logarithm of amount donated by respondent i
in country j, conditional on donating
uj is the country-specific intercept
Gj is government expenditures in country j
εij is the error term for each observation
Controls: GDP per capita (L2), age, education, gender,
marital status, income (L1)
21. However…
Positive and negative correlations may cancel each
other out
There could be different effects in different nonprofit
subsectors
Government support in social welfare could drive
donors to other ‘expressive’ subsectors
22. Multilevel regression model (3)
p(Y)ijs / (1 – p(Y)ijs)
= β0 + ujs + β1Gjs + … + εijs
Probability that respondent i in country j donates to
sector s
ujs is the country/sector-specific intercept
Gjs is government expenditures to sector s in country j
εijs is the error term for each observation
Controls: GDP per capita (L2), age, education, gender,
marital status, income (L1)
23. Multilevel regression model (4)
ln(Yijs)
= β0 + ujs + β1Gjs + … + εijs
Natural logarithm of amount donated by respondent i
in country j to sector s, conditional on donating
ujs is the country/sector-specific intercept
Gjs is government expenditures to sector s in country j
εijs is the error term for each observation
Controls: GDP per capita (L2), age, education, gender,
marital status, income (L1)
27. Crosswise crowding-in (2)
Yijs = Donations to environment, international aid, or
arts and culture
Gjs = Government expenditures to social protection and
health
32. Conclusions
Crowding-in of donors
But less so in health and social protection subsectors
Social welfare expenditures seem to drive donors
towards ‘expressive’ subsectors
33. Conclusions
Crowding-in of donors
But less so in health and social protection subsectors
Social welfare expenditures seem to drive donors
towards ‘expressive’ subsectors
No crowding-out of amounts donated
34. Conclusions
Crowding-in of donors
But less so in health and social protection subsectors
Social welfare expenditures seem to drive donors
towards ‘expressive’ subsectors
No crowding-out of amounts donated
Important null finding
38. Donated (0/1), per sector
(1) (2) (3) (4)
Govt expenditures per sector / 1,000 0.127 *** 0.120 ** 0.129 ** 2.700 ***
(0.043) (0.056) (0.059) (0.535)
Sector: Environment ref
Sector: Education -1.050
(1.283)
Sector: Health 0.461
(0.500)
Sector: Social services 1.852 ***
(0.566)
Education * Govt expenditures / 1,000 -1.913 **
(0.815)
Health * Govt expenditures / 1,000 -2.435 ***
(0.541)
Social * Govt expenditures / 1,000 -2.741 ***
(0.536)
Constant - 0.905*** - 1.005
***
- 1.601
***
-2.234 ***
(0.114) (0.187) (0.446) (0.437)
Observations 157,392 157,392 157,392 157,392
Number of country-sector 39 39 39 39
Number of respondents 40,899 40,899 40,899 40,899
Rho 0.177 0.177 0.177 0.132
(2) Controlled for GDP
(3) & (4) Controlled for GDP, Age, Education, Male, Married, Income (ln)
Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1
39. Amount donated (ln), per sector
(1) (2) (3) (4)
Govt expenditures per sector / 1,000 -0.022 -0.087 -0.068 -1.453
(0.055) (0.063) (0.071) (1.741)
Sector: Environment Ref
Sector: Education 1.367
(1.634)
Sector: Health -0.363
(0.878)
Sector: Social services -0.357
(1.107)
Education * Govt expenditures / 1,000 0.594
(1.871)
Health * Govt expenditures / 1,000 1.382
(1.741)
Social * Govt expenditures / 1,000 1.409
(1.763)
Constant 3.878*** 3.082*** 1.919*** 2.052**
(0.210) (0.455) (0.505) (0.926)
Observations 49,725 49,725 49,725 49,725
Number of country-sector 26 26 26 26
Number of respondents 27,453 27,453 27,453 27,453
Rho 0.225 0.196 0.208 0.242
(2) Controlled for GDP
(3) & (4) Controlled for GDP, Age, Education, Male, Married, Income (ln)
Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1
40. Donated (0/1), crosswise
(1) (2) (3)
Social protection and health expenditures / 1,000 0.154 *** 0.108 * 0.146 ***
(0.030) (0.057) (0.056)
Constant -2.342 *** -2.695 *** -3.193 ***
(0.239) (0.302) (0.434)
Observations 115,825 115,825 115,825
Number of country-sector 28 28 28
Number of respondents 40,899 40,899 40,899
Rho 0.123 0.119 0.115
Y = giving to organizations in the fields of social services, health, environment,
international relief or arts and culture
(2) Controlled for GDP
(3) Controlled for GDP, Age, Education, Male, Married, Income (ln)
Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1
41. Amount donated (ln), crosswise
(1) (2) (3)
Social protection and health expenditures / 1,000 -0.032 -0.077 -0.016
(0.055) (0.067) (0.046)
Constant 4.326*** 3.778*** 2.497***
(0.469) (0.664) (0.477)
Observations 11,245 11,245 11,245
Number of country-sector 17 17 17
Number of respondents 9,180 9,180 9,180
Rho 0.175 0.169 0.181
Y = giving to organizations in the fields of social services, health, environment,
international relief or arts and culture
(2) Controlled for GDP
(3) Controlled for GDP, Age, Education, Male, Married, Income (ln)
Standard errors in parentheses. *** p<0.01, ** p<0.05, * p<0.1