A model of nongovernmental organization regulation with an application to Uganda
We develop a model of regulation of service-delivery nongovernmental organizations (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 bu...
| Main Authors: | , , |
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| Format: | Article |
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University of Chicago Press
2015
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| Online Access: | https://eprints.nottingham.ac.uk/38533/ |
| _version_ | 1848795633426628608 |
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| author | Burger, Ronelle Dasgupta, Indraneel Owens, Trudy |
| author_facet | Burger, Ronelle Dasgupta, Indraneel Owens, Trudy |
| author_sort | Burger, Ronelle |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We develop a model of regulation of service-delivery nongovernmental organizations (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. |
| first_indexed | 2025-11-14T19:35:11Z |
| format | Article |
| id | nottingham-38533 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:35:11Z |
| publishDate | 2015 |
| publisher | University of Chicago Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-385332020-05-04T20:06:50Z https://eprints.nottingham.ac.uk/38533/ A model of nongovernmental organization regulation with an application to Uganda Burger, Ronelle Dasgupta, Indraneel Owens, Trudy We develop a model of regulation of service-delivery nongovernmental organizations (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. University of Chicago Press 2015-10 Article PeerReviewed Burger, Ronelle, Dasgupta, Indraneel and Owens, Trudy (2015) A model of nongovernmental organization regulation with an application to Uganda. Economic Development and Cultural Change, 64 (1). pp. 71-111. ISSN 1539-2988 http://www.journals.uchicago.edu/doi/10.1086/682885 doi:10.1086/682885 doi:10.1086/682885 |
| spellingShingle | Burger, Ronelle Dasgupta, Indraneel Owens, Trudy A model of nongovernmental organization regulation with an application to Uganda |
| title | A model of nongovernmental organization regulation with an application to Uganda |
| title_full | A model of nongovernmental organization regulation with an application to Uganda |
| title_fullStr | A model of nongovernmental organization regulation with an application to Uganda |
| title_full_unstemmed | A model of nongovernmental organization regulation with an application to Uganda |
| title_short | A model of nongovernmental organization regulation with an application to Uganda |
| title_sort | model of nongovernmental organization regulation with an application to uganda |
| url | https://eprints.nottingham.ac.uk/38533/ https://eprints.nottingham.ac.uk/38533/ https://eprints.nottingham.ac.uk/38533/ |