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Of Market Failure, Voluntary Failure, and Third-Party Government: Toward a Theory of Government-Nonprofit Relations in the Modern Welfare State « U.S. Publications « Downloads
Date postedJune 23, 2014
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CategoriesU.S. Publications, News, Articles, Presentations, etc., Articles, Authored Articles

Nonprofit and Voluntary Sector Quarterly 1987 Vol. 16 | Lester M. Salamon.
This article argues that neglect of government-nonprofit ties is less the product of a lack of research than of important weaknesses in theory. Both the theory of the welfare state and the theory of the voluntary sector, moreover, are deficient. To overcome these weaknesses, the article advances an alternative theoretical formulation that replaces the prevailing conception of the welfare state with the concept of “third-party government,” and replaces the “market failure-government failure” theory of the voluntary sector with a theory built around the concept of “voluntary failure” instead.


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