Scandinavian Working Papers in Economics

Seminar Papers,
Stockholm University, Institute for International Economic Studies

No 754: Working for God? Evidence form a Change in Financing of not-for-profit Health Care Providers in Uganda

Ritva Reinikka () and Jakob Svensson ()
Additional contact information
Ritva Reinikka: World Bank
Jakob Svensson: Institute for International Economic Studies, Stockholm University, Postal: Stockholm University, S-106 69 Stockholm, Sweden

Abstract: What motivates religious not-for-profit health care providers? This paper uses a change in financing of not-for-profit health care providers in Uganda to test two theories of organizational behavior. We show that financial aid leads to more laboratory testing, lower user charges, and increased utilization. These findings are consistent with the view that religious not-for-profit providers are intrinsically motivated to serve (poor) people and that these preferences matter quantitatively.

Keywords: not-for-profit organizations; health care provision; organizational behavior; Uganda

JEL-codes: I10; L31; O12

28 pages, November 14, 2007

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