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http://hdl.handle.net/10419/58442
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| Title: | | Model of NGO regulation with an application to Uganda  |
| Authors: | | Burger, Ronelle Dasgupta, Indraneel Owens, Trudy |
| Issue Date: | | 2011 |
| Series/Report no.: | | Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6221 |
| Abstract: | | We develop a model of regulation of service-delivery NGOs, where future grants are conditional on prior spending of some minimal proportion of current revenue on direct project-related expenses. Such regulation induces some NGOs to increase current project spending, but imposes wasteful costs of compliance verification on all NGOs. Under a large class of parametric configurations, we find that regulation increases total discounted project expenditure over a regime of no regulation, when verification costs constitute no more than 15% of initial revenue. We characterize the optimal regulatory policy under these configurations. We apply our analysis to a large sample of NGOs from Uganda, and find regulation to be beneficial in that context. |
| Subjects: | | regulation of non-governmental organizations developing countries Uganda |
| JEL: | | G18 L31 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-201201113962 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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