Nonprofits are Not Alike: The Role of Catholic and Protestant Affiliation
Tilburg University, Department of Economics, CentER & TILEC; University of Florence, Dipartimento di Scienze Economiche
Tilburg University - CentER; Tilburg University - Law and Economics Center (TILEC); Tilburg University - Department of Organization & Strategy
April 26, 2013
TILEC Discussion Paper No. 2013-013
There are no generally accepted results regarding the objectives, decisions, and economic outcomes of nonprofit organizations, as compared to forprodit or public firms. We posit that this inconclusiveness is due to a too broad definition of nonprofits and that different types of nonprofits exist. This conjecture is investigated by constructing a model in which nonprofits differ by religious affiliation and testing the resulting hypotheses on the observed behavior of German nonprofit hospitals. We find that Catholic and Protestant nonprofits adopt significantly different strategies in the market. This confirms our conjecture and the importance of religion for economic outcomes.
Number of Pages in PDF File: 38
Keywords: Nonprofits, Governance, Owner Objectives, Religious Organizations
JEL Classification: L31, L21, Z12, D64, I11
Date posted: May 2, 2013
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