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The Redistributive Role of Non-profit Organizations

  • Giovanni Cerulli

    ()

    (CERIS – CNR, Research Institute on Firm and Development)

By starting from the consideration that non-profit organizations cover a significant redistributive function beside that of governmental agencies, the paper questions why government prefers to finance via transfers private entities (lucrative and non-lucrative) rather than produce these goods directly. By generalizing the Hansmann (1986) theory we propose a “make or buy” approach in which the choice among three different ownership regimes (governmental, non- profit and for-profit) providing services in public benefit-oriented sectors is affected not only by costs reduction (X-efficiency) but also by the level of transfers (degree of “universalism”) decided at a political level.

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File URL: http://otega.usc.es/docs_idega/documentos_de_traballo/analise_economica/analise_economica_36.pdf
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Paper provided by IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia in its series Documentos de trabajo - Analise Economica with number 0036.

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Length: 35 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:edg:anecon:0036
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  1. Giovanni Cerulli, 2006. "Una Matrice di Contabilità Sociale per il welfare mix: l'integrazione del settore non-profit. Prime verifiche empiriche ed effetti occupazionali per l'Italia," Rivista di Politica Economica, SIPI Spa, vol. 96(2), pages 79-128, March-Apr.
  2. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
  3. Chillemi, Ottorino & Gui, Benedetto, 1991. "Uninformed customers and nonprofit organization : Modelling 'contract failure' theory," Economics Letters, Elsevier, vol. 35(1), pages 5-8, January.
  4. Tobin, James, 1970. "On Limiting the Domain of Inequality," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 263-77, October.
  5. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
  6. John C. McManus, 1975. "The Costs of Alternative Economic Organizations," Canadian Journal of Economics, Canadian Economics Association, vol. 8(3), pages 334-50, August.
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