Thursday, February 25, 2010

Brian Galle on Keeping Charity Charitable

Brian Galle's forthcoming article Keeping Charity Charitable will appear in Volume 88 of the Texas Law Review.  Here is the abstract:

This Article responds to recent claims, most prominently by Anup Malani and Eric Posner, that much of the work of the charitable sector should be farmed out to for profit firms. For-profit firms are said to be more efficient because they can offer higher-powered incentives to cut costs. I argue, however, that because of the high costs of monitoring and the presence of externalities, low-powered incentives are preferable for firms that produce public goods. Further, allowing some for-profit firms to receive charitable subsidies would raise the cost of producing those goods in government or other firms, because it would diminish the

warm glowworkers enjoy from being recognized as self-sacrificing.


The "warm-glow"?  Obviously, Prof. Galle has never served in an administrative capacity at a college of university.  Most of us recognize that "warm glow" as plain old heartburn.


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Ha! Fortunately not.

Posted by: BDG | Mar 2, 2010 4:09:05 PM

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