Economics

Efficient Funding: Auditing in the Nonprofit Sector

Efficient Funding: Auditing in the Nonprofit Sector
Manufacturing & Service Operations Management. 13(4) 471-488.

N. Privett and F. Erhun
04/01/2011

Nonprofit organizations are a critical part of society as well as a growing sector of the economy. For funders there is an increasing and pressing need to ensure that society reaps the most social benefit for their money while also developing the nonprofit sector as a whole. By routinely scrutinizing nonprofit reports in an effort to deduce whether a nonprofit organization is efficient, funders may believe that they are, in fact, giving responsibly. However, we find that these nonprofit reports are unreliable, supporting a myriad of empirical research and revealing that report-based funding methods do not facilitate efficient allocation of funds. In response, we develop audit contracts that put funders in a position to enact change. Auditing, perhaps obviously, supports funders; however, we find that it also benefits the population of nonprofits. Moreover, auditing results in improved efficiency for the nonprofit sector overall. Indeed, our conclusions indicate that nonprofits may want to work with funders to increase the use of auditing, consequently increasing efficiency for the sector overall and impacting society as a whole.

Wage Disparities and Women of Color

Wage Disparities and Women of Color

Women of Color Policy Network
04/01/2011

More women are becoming the primary wage earners in households across the country, yet men continue earn higher wages than women. Occupational segmentation and unequal access to wealth lead to exponentially growing career income gaps for women. This brief explores the policy implications of recent Census data revealing that women earn 77 cents for every dollar earned by men. With Black women and Hispanic women earning even less, targeted policy solutions must incorporate opportunities for women in low-income and marginalized communities. Policies will contribute to greater wage equity if they incorporate: pay check fairness; the extension of paid sick leave benefits to caregivers; and increased access to labor market, child care, and educational opportunities for low-income women.

The Supplemental Poverty Measure and Communities of Color

The Supplemental Poverty Measure and Communities of Color

Women of Color Policy Network
03/01/2011

With nearly 44 million individuals living in poverty, including 24 million people of color, the anticipated publication of the Supplemental Poverty Measure in the fall of 2011 provides an opportunity to review our nation's progress towards poverty alleviation and collaboratively strategize ways to ensure that anti-poverty efforts are inclusive of the most vulnerable segments of society. This policy brief explains how the new measure will help policymakers, researchers, and advocates better understand the breadth and depth of poverty's impact on communities of color.

The Impact of Recent Budget Proposals on Women of Color, Their Families, and Communities

The Impact of Recent Budget Proposals on Women of Color, Their Families, and Communities

Women of Color Policy Network
02/01/2011

The House and Presidential budget proposals released in February of 2011 include plans to reduce or eliminate funding to key programs that assist low-income families and communities of color. This policy brief highlights the detrimental impact of the proposed social spending cuts and emphasizes the need to invest in the long-term economic security of women of color, their families, and communities.

Disentangling Accountability and Competence in Elections: Evidence from U.S. Term Limits

Disentangling Accountability and Competence in Elections: Evidence from U.S. Term Limits
With James Alt and Ethan Bueno de Mesquita.  The Journal of Politics 73 (1): 171-186.

Rose, S.
01/01/2011

We exploit variation in U.S. gubernatorial term limits across states and time to empirically estimate two separate effects of elections on government performance. Holding tenure in office constant, differences in performance by reelection-eligible and term-limited incumbents identify an accountability effect: reelection-eligible governors have greater incentives to exert costly effort on behalf of voters. Holding term-limit status constant, differences in performance by incumbents in different terms identify a competence effect: later-term incumbents are more likely to be competent both because they have survived reelection and because they have experience in office. We show that economic growth is higher and taxes, spending, and borrowing costs are lower under reelection-eligible incumbents than under term-limited incumbents (accountability), and under reelected incumbents than under first-term incumbents (competence), all else equal. In addition to improving our understanding of the role of elections in representative democracy, these findings resolve an empirical puzzle about the disappearance of the effect of term limits on gubernatorial performance over time.

Economics of children's environmental health

Economics of children's environmental health
Mt Sinai J Med. 2011 Jan-Feb;78(1):98-106

Trasande L
01/01/2011

Economic analyses are increasingly appearing in the children's environmental-health literature. In this review, an illustrative selection of articles that represent cost analyses, cost-effectiveness analyses, and cost-benefit analyses is analyzed for the relative merits of each approach. Cost analyses remain the dominant approach due to lack of available data. Cost-effectiveness and cost-benefit analyses in this area face challenges presented by estimation of costs of environmental interventions, whose costs are likely to decrease with further technological innovation. Benefits are also more difficult to quantify economically and can only be partially alleviated through willingness-to-pay approaches. Nevertheless, economic analyses in children's environmental health are highly informative and important informants to public-health and policy practice. Further attention and training in their appropriate use are needed.

Borrowing to Save

Borrowing to Save
Journal of Globalization and Development 102 (2), December 2010.

Jonathan Morduch
12/01/2010

Poor families often borrow even when they have savings sufficient to cover the loan. The practice is costly relative to drawing down one’s own savings, and it seems particularly puzzling in poor communities.  The families themselves explain that it is easier to repay a moneylender than to “repay” oneself, an explanation in line with recent findings in behavioral economics.  In this context, high interest rates on loans can help instill discipline.  While workable, the mechanism is hardly optimal; options could be improved through access to a contractual saving device that helps savers rebuild assets after a major withdrawal.

At Rope’s End: Single Women Mothers, Wealth and Asset Accumulation in the United States

At Rope’s End: Single Women Mothers, Wealth and Asset Accumulation in the United States

Mariko Chang, PhD and C. Nicole Mason, PhD
10/01/2010

A commissioned report for the Opportunity Series of the Women of Color Policy Network, this report examines the economic security and vulnerability of single mothers through the lens of wealth and asset accumulation as opposed to income and employment.

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