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Publications
  • February 2023
  • Article
  • Journal of Political Economy Microeconomics

Nonprofits in Good Times and Bad Times

By: Christine L. Exley, Nils H. Lehr and Stephen J. Terry
  • Format:Print
  • | Pages:38
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Abstract

Need fluctuates over the business cycle. We conduct a survey revealing a desire for nonprofit activities to countercyclically expand during downturns. We then demonstrate, using comprehensive U.S. nonprofit data drawn from millions of tax returns, that the public's hopes are disappointed. Nonprofit expenditure, revenue, and balance sheets fluctuate procyclically: contracting during national and local downturns. This finding is evident even for a narrow group of nonprofits the public most wishes would expand during downturns, e.g., those providing critical needs like food or housing. Our new facts contribute to the charitable giving, nonprofit, and business cycle literatures.

Keywords

Nonprofit Organizations; Business Cycles; Philanthropy and Charitable Giving

Citation

Exley, Christine L., Nils H. Lehr, and Stephen J. Terry. "Nonprofits in Good Times and Bad Times." Journal of Political Economy Microeconomics 1, no. 1 (February 2023): 42–79.
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About The Author

Christine L. Exley

Negotiation, Organizations & Markets
→More Publications

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    When Do Individuals Give Up Agency? The Role of Decision Avoidance

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    The Gender Minority Gaps in Confidence and Self-Evaluations

    By: Billur Aksoy, Christine L. Exley and Judd B. Kessler
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    The Gender Gap in Confidence: Expected But Not Accounted For

    By: Christine L. Exley and Kirby Nielsen
More from the Authors
  • When Do Individuals Give Up Agency? The Role of Decision Avoidance By: Holly Dykstra, Christine L. Exley and Muriel Niederle
  • The Gender Minority Gaps in Confidence and Self-Evaluations By: Billur Aksoy, Christine L. Exley and Judd B. Kessler
  • The Gender Gap in Confidence: Expected But Not Accounted For By: Christine L. Exley and Kirby Nielsen
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