Public-Private Partnership for the Provision of Public Goods: Theory and an Application to NGOs
AbstractThis 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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Bibliographic InfoPaper 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and Related Disciplines, LSE in its series STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers with number 17.
Date of creation: Aug 1999
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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp
Public goods; non-governmental organizations; incomplete contracting; partnerships.;
Other versions of this item:
- Timothy Besley & Maitreesh Ghatak, 1999. "Public-private partnership for the provision of public goods : theory and an application to NGOs," LSE Research Online Documents on Economics 2162, London School of Economics and Political Science, LSE Library.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- H4 - Public Economics - - Publicly Provided Goods
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- Roy Chowdhury, Prabal & Roy, Jaideep, 2007.
"Public-private Partnerships in Micro-finance: Should NGO Involvement be Restricted?,"
4469, University Library of Munich, Germany.
- Roy, Jaideep & Chowdhury, Prabal Roy, 2009. "Public-private partnerships in micro-finance: Should NGO involvement be restricted?," Journal of Development Economics, Elsevier, vol. 90(2), pages 200-208, November.
- Jaideep Roy & Prabal Roy Chowdhury, 2008. "Public-private partnerships in microfinance: Should NGO involvement be restricted?," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-11, Indian Statistical Institute, New Delhi, India.
- Abigail Barr & Marcel Fafchamps & Trudy Owens, 2004.
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CSAE Working Paper Series
2004-06, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr & Marcel Fafchamps & Trudy Owens, 2004. "The Resources and Governance of Non-Governmental Organizations in Uganda," Development and Comp Systems 0409047, EconWPA.
- Abigail Barr & Marcel Fafchamps, 2004. "The Resources and Governance of Non-Governmental Organizations in Uganda," Economics Series Working Papers WPS/2004-06, University of Oxford, Department of Economics.
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