TY  - RPRT
        AU  - Burger, Ronelle
AU  - Dasgupta, Indraneel
AU  - Owens, Trudy
        TI  - A Model of NGO Regulation with an Application to Uganda
        PY  - 2011/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6221
        UR  - https://www.iza.org/index.php/publications/dp6221
        AB  - We develop a model of regulation of service-delivery NGOs, where future grants are conditional on prior spending of some minimal proportion of current revenue on direct project-related expenses. Such regulation induces some NGOs to increase current project spending, but imposes wasteful costs of compliance verification on all NGOs. Under a large class of parametric configurations, we find that regulation increases total discounted project expenditure over a regime of no regulation, when verification costs constitute no more than 15% of initial revenue. We characterize the optimal regulatory policy under these configurations. We apply our analysis to a large sample of NGOs from Uganda, and find regulation to be beneficial in that context.
        KW  - developing countries
KW  - regulation of non-governmental organizations
KW  - Uganda
        ER  -