A Model of NGO Regulation with an Application to Uganda
AbstractWe develop a model of regulation of service-delivery NGOs, where future grants are conditional on prior spending of some minimal proportion of current revenue on direct project-related expenses. Such regulation induces some NGOs to increase current project spending, but imposes wasteful costs of compliance verification on all NGOs. Under a large class of parametric configurations, we find that regulation increases total discounted project expenditure over a regime of no regulation, when verification costs constitute no more than 15% of initial revenue. We characterize the optimal regulatory policy under these configurations. We apply our analysis to a large sample of NGOs from Uganda, and find regulation to be beneficial in that context.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Stellenbosch University, Department of Economics in its series Working Papers with number 22/2011.
Date of creation: 2011
Date of revision:
Regulation of non-governmental organizations; developing countries; Uganda;
Other versions of this item:
- Burger, Ronelle & Dasgupta, Indraneel & Owens, Trudy, 2011. "A Model of NGO Regulation with an Application to Uganda," IZA Discussion Papers 6221, Institute for the Study of Labor (IZA).
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aldashev, Gani & Verdier, Thierry, 2010. "Goodwill bazaar: NGO competition and giving to development," Journal of Development Economics, Elsevier, vol. 91(1), pages 48-63, January.
- Spiros Bougheas & Indraneel Dasgupta & Oliver Morrissey, 2011.
"Repayment versus Investment Conditions and Exclusivity in Lending Contracts,"
Journal of Institutional and Theoretical Economics (JITE),
Mohr Siebeck, Tübingen, vol. 167(2), pages 247-265, June.
- Bougheas, Spiros & Dasgupta, Indraneel & Morrissey, Oliver, 2009. "Repayment versus Investment Conditions and Exclusivity in Lending Contracts," IZA Discussion Papers 4604, Institute for the Study of Labor (IZA).
- Jeremy Thornton, 2008. "Competition, Contractibility, and the Market for Donors to Nonprofits," Journal of Law, Economics and Organization, Oxford University Press, vol. 24(1), pages 215-246, May.
- Guriev, Sergei, 2004.
"Red tape and corruption,"
Journal of Development Economics,
Elsevier, vol. 73(2), pages 489-504, April.
- Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2002.
"The Institutional Economics of Foreign Aid,"
Cambridge University Press, number 9780521808187, April.
- Barr, Abigail & Fafchamps, Marcel & Owens, Trudy, 2005. "The governance of non-governmental organizations in Uganda," World Development, Elsevier, vol. 33(4), pages 657-679, April.
- Robinson, Mark & Riddell, Roger C., 1995. "Non-Governmental Organizations and Rural Poverty Alleviation," OUP Catalogue, Oxford University Press, number 9780198233305, September.
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
- Spiros Bougheas & Indraneel Dasgupta & Oliver Morrissey, 2007. "Tough love or unconditional charity?," Oxford Economic Papers, Oxford University Press, vol. 59(4), pages 561-582, October.
- Mookherjee, Dilip & Png, I P L, 1995. "Corruptible Law Enforcers: How Should They Be Compensated?," Economic Journal, Royal Economic Society, vol. 105(428), pages 145-59, January.
- Rachel M. McCleary & Robert J. Barro, 2006. "U.S.-Based Private Voluntary Organizations: Religious and Secular PVOs Engaged in International Relief & Development," NBER Working Papers 12238, National Bureau of Economic Research, Inc.
- Burger, Ronelle & Dasgupta, Indraneel & Owens, Trudy, 2014.
"Why Pay NGOs to Involve the Community?,"
IZA Discussion Papers
8051, Institute for the Study of Labor (IZA).
- Ronelle Burger & Indraneel Dasgupta & Trudy Owens, 2014. "Why pay NGOs to involve the community?," Working Papers 05/2014, Stellenbosch University, Department of Economics.
- Ronelle Burger & Indraneel Dasgupta & Trudy Owens, . "Why Pay NGOs to Involve the Community?," Discussion Papers 14/01, University of Nottingham, CREDIT.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Melt van Schoor).
If references are entirely missing, you can add them using this form.