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Stochastic frontier in non-profit associations’ performance assessment (the case of homeowners’ associations)

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Author Info

  • Borisova, Ekaterina I.

    ()
    (National Research University Higher School of Economics)

  • Peresetsky, Anatoly

    ()
    (Higher School of Economics)

  • Polishchuk, Leonid

    ()
    (National Research University Higher School of Economics, University of Maryland)

Abstract

The paper demonstrates the potential of the stochastic frontier-based methods of performance assessment of non-profit associations. They are commonly used for productivity analysis and could serve as an adequate tool for such assessment, especially when dealing with numerous non-profits pursuing identical and clearly identified objectives. A case in point is homeowners associations (HOA), which are formed within apartment buildings to manage common property. Data was collected by a survey of 82 HOAs in Russia’s national capital Moscow and a large industrial city of Perm. Different techniques and robust checks are applied, exogenous parameters that influence HOA efficiency are revealed. Among those, physical conditions of the housing stock and ability of tenants to resolve the collective action problem in operating housing infrastructure were shown to be of primary importance. Overall, HOA, despite of their appeal and successful performance in developed nations, are not necessarily a superior option in countries and societies where civic capacity is in short supply, and housing stock suffers from wear and tear

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Bibliographic Info

Article provided by Publishing House "SINERGIA PRESS" in its journal Applied Econometrics.

Volume (Year): 20 (2010)
Issue (Month): 4 ()
Pages: 75-101

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Handle: RePEc:ris:apltrx:0010

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Web page: http://appliedeconometrics.cemi.rssi.ru/

Related research

Keywords: stochastic frontier; non-profit organizations; homeowners associations; social capital; housing and communal services reform;

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References

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  1. Mehdi Farsi & Massimo Filippini, 2004. "An Empirical Analysis of Cost Efficiency in Non-profit and Public Nursing Homes," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(3), pages 339-365, 09.
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Cited by:
  1. Borisova, Ekaterina, 2011. "Decision to make a HOA: Empirical evidence," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 24(4), pages 48-57.
  2. L. Polishchuk & E. Borisova & A. Peresetsky., 2010. "Managing Common Property in Russian Cities: An Economic Analysis of Homeowners Associations," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.

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