The Effects of Organizational Form in the Mixed Market for Foster Care

35 Pages Posted: 24 May 2010

See all articles by Jeremy P. Thornton

Jeremy P. Thornton

Samford University - Brock School of Business

Lisa Cave

Morehead State University

Multiple version iconThere are 2 versions of this paper

Abstract

This paper uses proprietary quality of care data to examine the consequences of organizational form in privatized US foster care services. The contract failure hypothesis generically proposes that nonprofits should provide higher quality services, relative to for-profits, when output is costly to observe. Advocates argue that the nonprofits offer important consumer protections when public services are contracted to private agencies. Contrary to expectations, we find that nonprofit firms do not offer higher quality services. We explore the possibility that monitoring efforts by state regulators or competition among foster care agencies effectively mitigate the influence of organizational form in this particular mixed market.

Suggested Citation

Thornton, Jeremy P. and Cave, Lisa, The Effects of Organizational Form in the Mixed Market for Foster Care. Annals of Public and Cooperative Economics, Vol. 81, Issue 2, pp. 211-245, June 2010, Available at SSRN: https://ssrn.com/abstract=1611946 or http://dx.doi.org/10.1111/j.1467-8292.2010.00410.x

Jeremy P. Thornton (Contact Author)

Samford University - Brock School of Business ( email )

800 Lakeshore Drive
Birmingham, AL 35229
United States
2057262128 (Phone)

HOME PAGE: http://https://www.samford.edu/business/directory/Thornton-Jeremy

Lisa Cave

Morehead State University ( email )

Morehead, KY 40351
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
581
PlumX Metrics