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The redistributive role of non-profit organizations

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  • Cerulli, Giovanni

Abstract

By starting from the consideration that non-profit organizations cover a significant re-distributive function beside that of governmental agencies, the paper questions why government prefers to finance via transfers private entities likewise lucrative and non-lucrative entities rather than produce these goods directly. By generalizing the Hansmann (1996) theory, we propose a “make or buy” approach in which the choice among three different ownership regimes (governmental, non-profit and for-profit) providing services in public benefit oriented sectors is affected not only by costs reduction (X-efficiency) but also by the level of transfers (degree of “redistribution”) decided at a political level.

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File URL: http://mpra.ub.uni-muenchen.de/28/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28.

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Date of creation: 01 May 2006
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Handle: RePEc:pra:mprapa:28

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Keywords: non-profit organizations; redistribution; property rights;

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  1. Giovanni Cerulli, 2006. "Una Matrice di Contabilità Sociale per il welfare mix: l'integrazione del settore non-profit. Prime verifiche empiriche ed effetti occupazionali per l'Italia," Rivista di Politica Economica, SIPI Spa, vol. 96(2), pages 79-128, March-Apr.
  2. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
  3. John C. McManus, 1975. "The Costs of Alternative Economic Organizations," Canadian Journal of Economics, Canadian Economics Association, vol. 8(3), pages 334-50, August.
  4. Tobin, James, 1970. "On Limiting the Domain of Inequality," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 263-77, October.
  5. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
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