Does Public Policy Crowd Out Private Contributions to Public Goods

Author: Nyborg Karine   Rege Mari  

Publisher: Springer Publishing Company

ISSN: 0048-5829

Source: Public Choice, Vol.115, Iss.3-4, 2003-06, pp. : 397-418

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Abstract

It is sometimes claimed that individuals' contributions to public goods are not motivated by economic costs and benefits alone, but that people also have a moral or norm-based motivation. A number of studies indicate that such moral or norm-based motivation might be crowded out, or crowded in, by public policy. This paper discusses some models that can yield insight into the interplay between economic and moral or norm-based motivation for voluntary contributions to public goods, and compares their policy implications. We distinguish between five types of models: Altruism models, social norm models, fairness models, models of commitment and the cognitive evaluation theory.