Efficiency, quality, and social externalities in the provision of day care: Comparisons of nonprofit and for-profit firms
Efficiency comparisons of nonprofit and for-profit day care centers reveal that, in 1977, production functions of nonprofit and for-profit day care centers were similar. Cost levels were also similar for centers providing identical services. However, on average, nonprofit centers offered costlier services than for-profit centers. In the segment of the industry not subject to federal regulations, nonprofit centers offered services with higher social externalities than for-profit centers. In the federally regulated segment, nonprofit centers offered higher quality services than for-profit centers. Therefore the important difference in economic outcome of nonprofit and for-profit day care centers involved product selection rather than efficiency levels. Copyright Kluwer Academic Publishers 1993
When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:4:y:1993:i:1:p:165-182. 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)
If references are entirely missing, you can add them using this form.