Journal article
Revisiting the Theory of Government Failure in the Face of Heterogeneous Demands
Perspectives on public management and governance, Vol.2(2), pp.103-124
05/25/2019
DOI: 10.1093/ppmgov/gvz002
Abstract
What explains the development of the nonprofit sector? The classic theory of demand heterogeneity posits the nonprofit sector provides services for those unsatisfied by government service delivery. However, formal tests of this theory have produced conflicting results. This article revisits the theory of demand heterogeneity, refining it to include the mediating effects of government wherein increased diversity leads to lower levels of government funding, which are associated with a larger nonprofit sector. The test results do not support this refined model, and instead generally support theories of government and nonprofit interdependencies, whereby increased diversity leads to a larger nonprofit sector through larger government. We condition our results by the type of good being produced, and call for future empirical tests to identify processes by which demand heterogeneity influences the development of the nonprofit sector.
Details
- Title: Subtitle
- Revisiting the Theory of Government Failure in the Face of Heterogeneous Demands
- Creators
- Laurie E Paarlberg - Indiana University Purdue University IndianapolisSamantha Zuhlke - University of Iowa, School of Planning and Public Affairs
- Resource Type
- Journal article
- Publication Details
- Perspectives on public management and governance, Vol.2(2), pp.103-124
- DOI
- 10.1093/ppmgov/gvz002
- ISSN
- 2398-4910
- eISSN
- 2398-4929
- Publisher
- Oxford University Press
- Language
- English
- Date published
- 05/25/2019
- Academic Unit
- Center for Social Science Innovation; Public Policy Center (Archive); School of Planning and Public Affairs
- Record Identifier
- 9984118246002771
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