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| Author: | Lakdawalla, D. Philipson, T. |
| Title: | The nonprofit sector and industry performance |
| Journal: | Journal of Public Economics
2006 : SEP, VOL. 90:8-9, p. 1681-1698 |
| Index terms: | industrial performance market structure non-profit organizations |
| Language: | eng |
| Abstract: | The analysis of this article 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. The article claims that 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. The theory of this paper 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. The article also discusses aspects of the empirical literature that test this theory of nonprofit activity. |
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