Abstract
In this work, we intend to evaluate the triangular sustainability of not-for-profit organizations, putting a special emphasis on the study of economies of scale. After a collection of raw data from the historical archives of the institution (a ‘Santa Casa da Misericordia de Barcelos’), we constructed a panel database. Using this database, we estimated cobb-douglas costs functions, by applying fixed and random effects. We found that Portuguese institutions as the one here studied (belonging to the Portuguese Social Economy and as a representative of the Holy Houses of Mercy) exhibit economies of scale, which ask for a renewed perspective of the sector by the regulating entities.
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Notes
It is important to notice that, as statistically requested, the main independent variable (lutente) is not highly correlated with the input variables (coefficients lower than 0.70) neither with the prices of input (Amsler et al. 2014). If there were coefficients higher than 0.70 there could appear problems of endogeneity. For confirming the absence of problems of endogeneity among the number of users, the input variables, and the prices of inputs we ran Hausman tests considering as instruments the product between inputs and their prices; and we also got p values lower than 1 % (null hypothesis related to the statistically significance of the used instruments).
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The authors recognize the attention and the suggestions of two anonymous Reviewers on a previous version of this research. The authors are also indebted to the participants of the Sessions at which a previous version of this research had been discussed (2015 Academic Conference ‘Social and Sustainable Finance and Impact Investing’, Oxford, 23rd–24th April and 2015 Academic Conference ‘The European Year for Development’, UTAD/Vila Real, 4th May 2015). Remaining errors are authors’ exclusive ones.
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Mourão, P., Enes, C. Costs and Economies of Scale at Not-for-Profit Organizations: The Case of the Santa Casa da Misericórdia de Barcelos Between 2002 and 2013. Soc Indic Res 132, 821–840 (2017). https://doi.org/10.1007/s11205-016-1315-4
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DOI: https://doi.org/10.1007/s11205-016-1315-4