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The Importance of Corporation Law to Civil Society

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  • Bowman Woods

Abstract

The thesis of this paper is that transactions costs related to formation of nonprofit corporations are restraining the size of the nonprofit sector in Europe. An unfettered ability to incorporate is an important determinant of nonprofit formation. The point is illustrated with historical data from the United States. Given that an increasing number of nonprofits have transnational goals, the lack of a common regulatory regime for nonprofits in Europe raises transactions costs and stifles development of the nonprofit sector--just as the lack of a common regulatory regime for commerce prior to founding of the European Union had retarded business activity.

Suggested Citation

  • Bowman Woods, 2011. "The Importance of Corporation Law to Civil Society," Nonprofit Policy Forum, De Gruyter, vol. 2(1), pages 1-17, May.
    • Handle: RePEc:bpj:nonpfo:v:2:y:2011:i:1:p:17:n:2
    DOI: 10.2202/2154-3348.1012
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    References listed on IDEAS

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    1. Estelle James, 1993. "Why Do Different Countries Choose a Different Public-Private Mix of Educational Services?," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 571-592.
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