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Stochastic frontier in non-profit associations’ performance assessment (the case of homeowners’ associations)

Author

Listed:
  • Borisova, Ekaterina I.

    () (National Research University Higher School of Economics)

  • Peresetsky, Anatoly

    () (Higher School of Economics)

  • Polishchuk, Leonid

    () (National Research University Higher School of Economics, University of Maryland)

Abstract

The paper demonstrates the potential of the stochastic frontier-based methods of performance assessment of non-profit associations. They are commonly used for productivity analysis and could serve as an adequate tool for such assessment, especially when dealing with numerous non-profits pursuing identical and clearly identified objectives. A case in point is homeowners associations (HOA), which are formed within apartment buildings to manage common property. Data was collected by a survey of 82 HOAs in Russia’s national capital Moscow and a large industrial city of Perm. Different techniques and robust checks are applied, exogenous parameters that influence HOA efficiency are revealed. Among those, physical conditions of the housing stock and ability of tenants to resolve the collective action problem in operating housing infrastructure were shown to be of primary importance. Overall, HOA, despite of their appeal and successful performance in developed nations, are not necessarily a superior option in countries and societies where civic capacity is in short supply, and housing stock suffers from wear and tear

Suggested Citation

  • Borisova, Ekaterina I. & Peresetsky, Anatoly & Polishchuk, Leonid, 2010. "Stochastic frontier in non-profit associations’ performance assessment (the case of homeowners’ associations)," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 20(4), pages 75-101.
  • Handle: RePEc:ris:apltrx:0010
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    References listed on IDEAS

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    Cited by:

    1. Borisova, Ekaterina, 2011. "Decision to make a HOA: Empirical evidence," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 24(4), pages 48-57.
    2. Polishchuk, Leonid & Borisova, Ekaterina, 2010. "Performance assessment of Russian homeowners associations : The importance of being social," MPRA Paper 28785, University Library of Munich, Germany.
    3. L. Polishchuk & E. Borisova & A. Peresetsky., 2010. "Managing Common Property in Russian Cities: An Economic Analysis of Homeowners Associations," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    4. Brock, Gregory, 2015. "The informal economy of Rostov Oblast on the eve of the Ukrainian refugee crisis," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 789-803.

    More about this item

    Keywords

    stochastic frontier; non-profit organizations; homeowners associations; social capital; housing and communal services reform;

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics

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