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The German Gemeinwirtschaftslehre: Implications for modern nonprofit economics

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  • Vladislav Valentinov

Abstract

This article examines the way modern nonprofit economics can be informed by the Gemeinwirtschaftslehre, a strand of public and nonprofit economics that was popular in German‐speaking countries until the 1980s. Despite its present decline, the Gemeinwirtschaftslehre yields a valuable implication that nonprofit firms address market failure by supplanting the pecuniary entrepreneurial motivation with a nonpecuniary one. In this article, this implication is used to reconsider two central and controversial issues in modern nonprofit economics: the rationale behind the nondistribution constraint in nonprofit firms, and the integration between the market failure and supply‐side theories of the nonprofit sector. The article concludes by discussing the emerging prospects for empirical research.

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  • Vladislav Valentinov, 2009. "The German Gemeinwirtschaftslehre: Implications for modern nonprofit economics," Regulation & Governance, John Wiley & Sons, vol. 3(2), pages 186-195, June.
    • Handle: RePEc:wly:reggov:v:3:y:2009:i:2:p:186-195
    DOI: 10.1111/j.1748-5991.2009.01050.x
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    5. Ballou, Jeffrey P. & Weisbrod, Burton A., 2003. "Managerial rewards and the behavior of for-profit, governmental, and nonprofit organizations: evidence from the hospital industry," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1895-1920, September.
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