Prague Economic Papers 2019, 28(3):276-295 | DOI: 10.18267/j.pep.671

Selected Socioeconomic Determinants of the Size of the Nonprofit Sector Serving Households in the OECD Countries

Jindřich Špička^a, Markéta Arltová^b, Petr Boukal^a

^a Faculty of Business Administration, University of Economics, Prague, Czech Republic

^b Faculty of Informatics and Statistics, University of Economics, Prague, Czech Republic

The article investigates the differences in socioeconomic determinants of the size of the nonprofit sector serving households in the wealthy and less wealthy OECD countries. Based on panel data modelling of 22 wealthy OECD countries and 17 less wealthy OECD countries in the long-term period 2000-2014, authors revealed distinctive determinants of the size of the nonprofit sector serving households in the wealthy and less wealthy countries. The model identified GDP per capita, government health care expenditures per capita, number of refugees per hundred thousand inhabitants and unemployment rate as significant long-term determinants of the size of the nonprofit sector in the wealthy OECD countries. Alternatively, GDP per capita, age and educational structure are significant long-term determinants of the size of the nonprofit sector in the less wealthy OECD countries. Authors found opposing effect of GDP per capita on the size the nonprofit sector between the two groups of countries.

Keywords: econometric modelling, government failure, nonprofit sector serving households, wealth

JEL classification: H50, L31

Received: June 14, 2017; Accepted: March 2, 2018; Published: July 10, 2019  Show citation