- New Thinking in Political Economy series
Edited by Francisco Cabrillo and Miguel A. Puchades-Navarro
Chapter 16: Voluntary provision of public goods
The standard theory of public goods shows that the market cannot efficiently supply public goods. The non-excludability of public goods prevents voluntary funding. As a result the supply of public goods cannot be based on voluntary gifts but on compulsory government exactions. However, in contrast to this conclusion, we actually find numerous non-profit institutions supplying a wide range of public and quasi-public goods; and in recent decades a large number of non-governmental organizations have emerged around the world. How do economists bridge this gap between theory and evidence? The literature related to non-profit organizations has experienced significant growth, dealing with their operation, funding and performance. Two main arguments support the emergence of non-profit institutions: the unsatisfied demand and the private consumer model.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.