Participation in and behavioral strategies on nonprofit organizations the importance of institutions

The study of the existence, behaviour of, and participation in non-profits does not always consider the importance of political institutions such as the level of corruption, government size, and trust in others as determinants of such existence. Their behaviour may be influenced by different stakeholders in a different manner than in for profit firms. This Essay empirically tests for the importance of political institutions in determining the size of the non-profit in the United States and in the decision to participate in nonprofits. Finally, I test for the influence of different stakeholders in resource allocation using a unique environment provided by the health system of Uruguay and where nonprofits are the major actors in the market. Results support the importance of political institutions such as trust on the existence of nonprofits and participation. Results also support some theoretical hypothesis on the relevance of market and public failures in determining the existence of non-profit organizations. On the other hand, I find that stakeholder influence is important for the resource allocation in Uruguayan health organizations.