Stochastic frontier in non-profit associations’ performance assessment (the case of homeowners’ associations)

Ekaterina Borisova, Anatoly Peresetsky and Leonid Polishchuk

Applied Econometrics, 2010, vol. 20, issue 4, 75-101

Abstract: The paper demonstrates the potential of the stochastic frontier-based methods of performance assessment of non-profit associations. They are commonly used for productivity analysis and could serve as an adequate tool for such assessment, especially when dealing with numerous non-profits pursuing identical and clearly identified objectives. A case in point is homeowners associations (HOA), which are formed within apartment buildings to manage common property. Data was collected by a survey of 82 HOAs in Russia’s national capital Moscow and a large industrial city of Perm. Different techniques and robust checks are applied, exogenous parameters that influence HOA efficiency are revealed. Among those, physical conditions of the housing stock and ability of tenants to resolve the collective action problem in operating housing infrastructure were shown to be of primary importance. Overall, HOA, despite of their appeal and successful performance in developed nations, are not necessarily a superior option in countries and societies where civic capacity is in short supply, and housing stock suffers from wear and tear

Keywords: stochastic frontier; non-profit organizations; homeowners associations; social capital; housing and communal services reform (search for similar items in EconPapers)
JEL-codes: C01 L31 P25 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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