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Public-Private Partnership for the Provision of Public Goods: Theory and an Application to NGOs

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  • Timothy Besley
  • Maitreesh Ghatak

Abstract

This paper analyzes the role of public and private responsibility in the provision of public goods. We emphasise that a typical public good will require many different inputs which raises the possibility of partnerships to exploit comparative advantages of different parties. But hold-up problems due to contractual incompleteness in specifying tasks discourage separation of ownership and management. We extend our analysis to examine the role of project design or 'ideology' as a separate non-contractible input, and the possibility of crowding out in the form of a less caring government being elected , because of the presence of private providers. The main application developed here is to NGOs in developing countries which, in the last two decades, have been increasingly involved in various capacities in the provisions of a wide range of public goods and services.

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File URL: http://sticerd.lse.ac.uk/dps/de/dedps17.pdf
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Bibliographic Info

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers with number 17.

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Date of creation: Aug 1999
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Handle: RePEc:cep:stidep:17

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

Related research

Keywords: Public goods; non-governmental organizations; incomplete contracting; partnerships.;

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Cited by:
  1. Roy Chowdhury, Prabal & Roy, Jaideep, 2007. "Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?," MPRA Paper 4469, University Library of Munich, Germany.
  2. Abigail Barr & Marcel Fafchamps & Trudy Owens, 2004. "The Resources and Governance of Non-Governmental Organizations in Uganda," CSAE Working Paper Series 2004-06, Centre for the Study of African Economies, University of Oxford.

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