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Determinants of saving in U.S. nonprofit organizations

Author

Listed:
  • Laudo Ogura

    (Grand Valley State University)

  • David T Yi

    (Xavier University)

Abstract

In this paper, we study how the saving behavior of nonprofit organizations are related to organizational characteristics. First, we present a model to show how these organizations make saving decisions based on their discount rate of future spending, prudence, and volatility of income. Then, we perform an econometric analysis using data from the 2000-2004 period. We find that savings are larger for organizations that depend more on public support or on returns from financial investments, while savings are smaller for organizations that rely more on government grants or on service fees. Moreover, volatility of revenue is associated with more savings, while social need objective is associated with smaller savings.

Suggested Citation

  • Laudo Ogura & David T Yi, 2015. "Determinants of saving in U.S. nonprofit organizations," Economics Bulletin, AccessEcon, vol. 35(4), pages 2786-2795.
    • Handle: RePEc:ebl:ecbull:eb-15-00571
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Kunofiwa TSAURAI, 2018. "Determinants Of The Percentage Of Savings In Emerging Markets: A Panel Data Analysis Approach, 1995-2015," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 18(2), pages 25-40.
    2. Marie Bouchard & Damien Rousselière, 2018. "Does Gibrat's law hold among urban social economy enterprises? A research note on Montreal social economy," Economics Bulletin, AccessEcon, vol. 38(3), pages 1523-1540.

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    More about this item

    Keywords

    Nonprofit Organization; Saving; Consumption smoothing; Precautionary Saving; Risk Averseness;
    All these keywords.

    JEL classification:

    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise

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