Nonprofit and Voluntary Sector Economics: A Critical Survey

Abstract
Two areas of study have sparked new interest in the economics pro fession : the economics of organization in general and the economics of the nonprofit organization in particular. The new economics of organization applies standard (neoclassical) analysis but concentrates on the incentives to individuals within organizations and on how those incentives affect their behavior. Economists have also begun studying what nonprofit enterprises do, why they are formed, how they operate, and how well they perform. Although the neoclassical paradigm is inclusive enough to incorporate the study of the non profit sector, economists must be careful to reexamine their assump tions in using it.

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