By Herrington J. Bryce
This ebook specializes in the nonprofit association as a social capital asset and agent in all levels of the general public coverage process--from influencing political events, systems, and selection of applicants to the formula and implementation of public coverage together with the facilitation of transactions. This booklet demonstrates the common software of the principal-agent paradigm for interpreting nonprofits in overseas or family coverage, sectarian or faith-based, clinical or social in addition to the regulatory (not simply participatory) powers of those enterprises over marketplace and nonmarket activities as a question of public, collective coverage. putting the nonprofit in a principal-agent framework, the booklet emphasizes such issues as resources of clash in public expectancies and organizational functionality, the ethical threat and merits of organizational self-interest, tax exemption as repayment or a reservation cost instead of only a subsidy, the position of social provider firms as managers of difficult social hazards, and their inherent aggressive virtue (even whilst faith-based) over organizations as brokers of selection for social carrier contracts from a strictly enterprise viewpoint. It additionally offers with the function of nonprofits in governance resembling over universal pool assets, the ethical chance of coverage, and the likelihood that the nonprofit will be an agent of distortions. This ebook is going past the economics of marketplace failure and provides political, coverage and administrative sciences, fiscal sociology, and the idea of contracts to encapsulate those firms as brokers and crucial gamers in any open and democratic public coverage approach.
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Extra resources for Players in the Public Policy Process: Nonprofits as Social Capital and Agents
Example text
Contract failure theory focuses on the nature of the contract or transactions that makes nonprofits more suited than firms to be agents of the public’s policies. Hansmann14 developed the contract failure theory. ’’’ Unlike market failure theorists, Hansmann’s focus is not on the type of good or consumer, but on the type of contractual understanding or arrangement that makes the market work. The norms by which market contracts are understood, arranged, and implemented do not work under certain circumstances.
With respect to market failure, Zerbe and McCurdy39 write that market failure theory fails in part because it is ‘‘ubiquitous’’ and, in part, because it may only be explaining the transaction costs to enforce and exercise property rights. By extension, to the extent that these property rights problems can be solved, market failure disappears as a justification for nonprofits or government intervention. They argue that some prominent economists have long recognized the limitation of market failure theories.
They argue that some prominent economists have long recognized the limitation of market failure theories. Together, these two essays are interpreted in this book to imply that the exclusive reliance on failure theories is intellectually risky and may obscure appreciation of the role of nonprofits in the public policy process. If failure is significant, but not sufficient, what other paradigms work to portray the social function of nonprofits? Summary and Preview The principal purpose of this chapter is to lay the foundation for the remainder of this book.