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Public-private partnerships for the provision of public goods: theory and an application to NGOs

Besley, Timothy and Ghatak, Maitreesh ORCID: 0000-0002-0126-0897 (2017) Public-private partnerships for the provision of public goods: theory and an application to NGOs. Research in Economics, 71 (2). pp. 356-371. ISSN 1090-9443

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Identification Number: 10.1016/j.rie.2017.04.005


When will a public good or service be provided by the government, when will it be provided by a NGO, and when will we see a private-public partnership? This paper provides a model where a typical public good requires different inputs which raises the possibility of partnerships to exploit comparative advantages of different parties. But hold-up problems due to contractual incompleteness in specifying tasks discourage separation of ownership and management. The fact that public goods have the property of non-rivalry and non-excludability and that NGOs tend to be non-profits drives our key results. We apply the framework to NGOs in developing countries which, in the last few decades, have been increasingly involved in various capacities in the provision of a wide range of public goods and services.

Item Type: Article
Official URL:
Additional Information: © 2017 Elsevier
Divisions: Economics
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
JEL classification: D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior; Transaction Costs; Property Rights
H - Public Economics > H4 - Publicly Provided Goods > H40 - General
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L30 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
Date Deposited: 05 May 2017 08:30
Last Modified: 04 Jul 2024 01:03

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