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The Redistributive Role of Non-profit Organizations

Author

Listed:
  • Giovanni Cerulli

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

Abstract

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 ìmake or buyî 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 ìuniversalismî) decided at a political level.

Suggested Citation

  • Giovanni Cerulli, 2006. "The Redistributive Role of Non-profit Organizations," Documentos de trabajo - Analise Economica 0036, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    • Handle: RePEc:edg:anecon:0036
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    Keywords

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    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • D6 - Microeconomics - - Welfare Economics
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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