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The economics of non-governmental organisations

By Colin Scott and R. Hopkins


The purpose of this paper is to identify the organisational comparative advantage of NGOs, and to develop a model which explains the set of circumstances uder which they emerge and dominate other types of firms. It is argued that the potential superiority of NGOs derives from two features: (1) the creation of an institutional environment within the firm which selectively attracts altruists, who have a lower supply price of effective labour than egotists, and (2) the ability to develop efficient technologies for converting the relevatory and productive effort of their staff into local outputs which are highly valued by the target group of beneficiaries

Topics: HB Economic Theory, HV Social pathology. Social and public welfare. Criminology
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 1999
OAI identifier:
Provided by: LSE Research Online

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