publication . Report . Article . Preprint . 1990

Provision of Child Care: Cost Functions for Profit-Making and Not-for-Profit Day Care Centers

Swati Mukerjee; Ann Dryden Witte;
Open Access
  • Published: 01 Apr 1990
  • Publisher: National Bureau of Economic Research
This paper estimates cost functions for day care centers in Massachusetts. The production technology assumed is the generalized homothetic Cobb-Douglas production function. The cost function dual to this production function is estimated separately for profit-making (P1Os) and not-for-profit (NPOs) organizations. The results are discussed in the context of current NPO literature. NPOs are found to be operating at higher average coats than PMOs for most output levels as predicted by the literature. However, the provision of more staff per child hour, our measure of quality, increases coats by similar amounts in PMOs and NPOs. Further, present forms of subsidies do...
Persistent Identifiers
free text keywords: Economics and Econometrics, Social Sciences (miscellaneous), Business and International Management, Marginal product, Day care, Economics, Subsidy, Nonprofit sector, For profit, Not for profit, Child care, Care center, Labour economics, Public economics

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