IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v34y2006i4p435-447.html
   My bibliography  Save this article

Nonprofit Organization and the Division of Labor: A Theoretical Perspective

Author

Listed:
  • Vladislav Valentinov

    ()

Abstract

This paper asks whether nonprofit organization can have a positive rationale in an economy based on the division of labor, taking into account that the process of the division of labor occurs through profit-motivated economic behavior. By reconsidering existing economic theories of nonprofit organization in the context of the theory of the division of labor, the paper shows nonprofit organization to be an institutional consequence of two limitations on the division of labor: high coordination costs among interdependent agents and the existence of production-related, as opposed to consumption-related, preferences. These limitations prevent the system of the division of labor from fully gratifying the consumption preferences of economic agents and, thereby, create a functional niche for nonprofit organization. Copyright International Atlantic Economic Society 2006

Suggested Citation

  • Vladislav Valentinov, 2006. "Nonprofit Organization and the Division of Labor: A Theoretical Perspective," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(4), pages 435-447, December.
  • Handle: RePEc:kap:atlecj:v:34:y:2006:i:4:p:435-447
    DOI: 10.1007/s11293-006-9032-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11293-006-9032-z
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xiaokai Yang & Jeff Borland, 2005. "A Microeconomic Mechanism For Economic Growth," World Scientific Book Chapters,in: An Inframarginal Approach To Trade Theory, chapter 18, pages 409-436 World Scientific Publishing Co. Pte. Ltd..
    2. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    3. Locay, Luis, 1990. "Economic Development and the Division of Production between Households and Markets," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 965-982, October.
    4. Furubotn, Eirik G & Pejovich, Svetozar, 1972. "Property Rights and Economic Theory: A Survey of Recent Literature," Journal of Economic Literature, American Economic Association, vol. 10(4), pages 1137-1162, December.
    5. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sahar Bahmani & Miguel-Ángel Galindo & María Méndez, 2012. "Non-profit organizations, entrepreneurship, social capital and economic growth," Small Business Economics, Springer, vol. 38(3), pages 271-281, April.

    More about this item

    Keywords

    D23; division of labor; nonprofit organization; preferences; property rights;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:34:y:2006:i:4:p:435-447. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.