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Nonprofits are not alike: The Role of Catholic and Protestant Affiliation

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  • Lapo Filistrucchi

    ()
    (DISEI, Università degli studi di Firenze)

  • Jens Prüfer

Abstract

There are no generally accepted results regarding the objectives, decisions, and economic outcomes of nonprofit organizations, as compared to for-profit or public firms. We posit that this inconclusiveness is due to a too broad definition of nonprofits and that different types of nonprofits exist. This conjecture is investigated by constructing a model in which nonprofits differ by religious affiliation and testing the resulting hypotheses on the observed behavior of German nonprofit hospitals. We find that Catholic and Protestant nonprofits adopt significantly different strategies in the market. This confirms our conjecture and the importance of religion for economic outcomes.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2013_07.rdf.

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Length: 39 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:frz:wpaper:wp2013_07.rdf

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Keywords: Governance; Owner Objectives; Religious Organizations; Catholicism and Protestantism; Hospitals;

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  1. Editors, 2003. "Editor's Introduction," American Journal of Economics and Sociology, Wiley Blackwell, Wiley Blackwell, vol. 62(4), pages 645-648, October.
  2. Filistrucchi, L. & Ozbugday, F.C., 2012. "Mandatory Quality Disclosure and Quality Supply: Evidence from German Hospitals," Discussion Paper, Tilburg University, Center for Economic Research 2012-070, Tilburg University, Center for Economic Research.
  3. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 124(2), pages 531-596, May.
  4. Gilat Levy & Ronny Razin, 2012. "Religious Beliefs, Religious Participation, and Cooperation," American Economic Journal: Microeconomics, American Economic Association, American Economic Association, vol. 4(3), pages 121-51, August.
  5. Ghatak, Maitreesh & Mueller, Hannes Felix, 2010. "Thanks for Nothing? Not-for-Profits and Motivated Agents," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7663, C.E.P.R. Discussion Papers.
  6. Ellis, Randall P., 1998. "Creaming, skimping and dumping: provider competition on the intensive and extensive margins1," Journal of Health Economics, Elsevier, Elsevier, vol. 17(5), pages 537-555, October.
  7. Vlassopoulos, Michael, 2009. "Quality, reputation and the choice of organizational form," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 71(2), pages 515-527, August.
  8. Editors, 2003. "Editor's Introduction," American Journal of Economics and Sociology, Wiley Blackwell, Wiley Blackwell, vol. 62(2), pages 315-318, 04.
  9. Jill R. Horwitz & Austin Nichols, 2007. "What Do Nonprofits Maximize? Nonprofit Hospital Service Provision and Market Ownership Mix," NBER Working Papers 13246, National Bureau of Economic Research, Inc.
  10. Jeremy Thornton, 2008. "Competition, Contractibility, and the Market for Donors to Nonprofits," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 24(1), pages 215-246, May.
  11. Karen Eggleston & Yu-Chu Shen & Joseph Lau & Christopher H. Schmid & Jia Chan, 2008. "Hospital ownership and quality of care: what explains the different results in the literature?," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1345-1362.
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