Local Knowledge and the Philanthropic Process: Comment on Boettke & Prychitko

Conversations in Philanthropy, Vol. 1, No. 1, 2004

6 Pages Posted: 9 Jun 2008

See all articles by Emily Chamlee-Wright

Emily Chamlee-Wright

Beloit College - Department of Economics and Management

Abstract

By challenging the condition of Pareto optimality as the benchmark against which the voluntary sector is compared, Boettke and Prychitko make an important correction in the literature on the philanthropic process. Further, their analysis of the relationship between the state and the voluntary sector sends a chilling warning. State funding of nonprofit organizations may ultimately erode the voluntary sectors ability to serve as a check on government power. Further, I agree with the authors that Austrian economics has much to contribute to our understanding of the philanthropic process, and it is on this point that I wish to devote the substance of my commentary.

Keywords: Philanthropy, philanthropic process, non-price discovery, local knowledge, Austrian Economics

JEL Classification: A13, O10, O20

Suggested Citation

Chamlee-Wright, Emily, Local Knowledge and the Philanthropic Process: Comment on Boettke & Prychitko. Conversations in Philanthropy, Vol. 1, No. 1, 2004, Available at SSRN: https://ssrn.com/abstract=1142548

Emily Chamlee-Wright (Contact Author)

Beloit College - Department of Economics and Management ( email )