کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
970395 | 1479497 | 2006 | 18 صفحه PDF | دانلود رایگان |

Despite the importance of nonprofit industries in the economy, little analysis has been conducted as to whether the behavior of such industries differs from that of for-profit industries. Extending previous firm-level analyses, we propose a neoclassical theory with an endogenous nonprofit sector. Our analysis implies that nonprofit firms have a competitive advantage over for-profit firms, so that marginal changes in the industry operate through the for-profit sector. As such, marginal industry behavior is identical to that of a for-profit industry and nonprofit regulations may have a limited impact or even no impact on overall industry performance. Our theory has the methodological advantage that standard for-profit analysis applies directly to nonprofit firms, because they can be analyzed as for-profit firms with lower costs. We discuss aspects of the empirical literature that test this theory of nonprofit activity.
Journal: Journal of Public Economics - Volume 90, Issues 8–9, September 2006, Pages 1681–1698