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Public-Private Partnerships and Prices: Evidence from Water Distribution in France

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Author Info
Eshien Chong
Freddy Huet
Stéphane Saussier ()
Faye Steiner

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Abstract

We use an original database of 5000 French local public authorities to explore the impact of organizational choice and performance as measured by consumer prices. In quantifying the impact of the choice of public-private partnerships (PPPs) on performance, we consider the related issue of the determinants of organizational choice. We estimate a switching regressions model to account for the endogeneity of organizational choice, and find that in our sample, (i) the choice by local public authorities to engage in a PPP is not random, and (ii) conditional on the choice of a PPP, consumer prices are significantly higher on average. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11151-006-9106-8
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Publisher Info
Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 29 (2006)
Issue (Month): 1 (September)
Pages: 149-169
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:revind:v:29:y:2006:i:1:p:149-169

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Web page: http://www.springerlink.com/link.asp?id=100336

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Related research
Keywords: Contractual Choices; Public-Private Partnerships; Public Services; Transaction Costs; Water supply; H0; H7; K00; L33;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Vining, Aidan R & Boardman, Anthony E, 1992. " Ownership versus Competition: Efficiency in Public Enterprise," Public Choice, Springer, vol. 73(2), pages 205-39, March.
  2. Hart, Oliver & Shleifer, Andrei & Vishny, Robert W, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1127-61, November.
    Other versions:
  3. Zupan, Mark A, 1989. "The Efficacy of Franchise Bidding Schemes in the Case of Cable Television: Some Systematic Evidence," Journal of Law & Economics, University of Chicago Press, vol. 32(2), pages 401-56, October.
  4. Stephen C Littlechild, 2002. "Competitive Bidding for a Long-Term Electricity Distribution Contract," Review of Network Economics, Concept Economics, vol. 1(1), pages 1-38, March. [Downloadable!]
  5. Bajari, Patrick & Tadelis, Steven, 2001. "Incentives versus Transaction Costs: A Theory of Procurement Contracts," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 387-407, Autumn.
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  6. Bennett, John & Iossa, Elisabetta, 2006. "Building and managing facilities for public services," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 2143-2160, November. [Downloadable!] (restricted)
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  7. Vickers, John & Yarrow, George, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-32, Spring. [Downloadable!] (restricted)
  8. Mark A. Zupan, 1989. "Cable Franchise Renewals: Do Incumbent Firms Behave Opportunistically?," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 473-482, Winter. [Downloadable!] (restricted)
  9. Victor P. Goldberg, 1976. "Regulation and Administered Contracts," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 426-448, Autumn. [Downloadable!] (restricted)
  10. Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 306-42, April.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nicolas Gruyer, 2008. "Optimal Auctions when a seller is bound to sell to collusive bidders (new version of "using lotteries ...")," Economics Working Papers 06, LEEA (air transport economics laboratory), ENAC (french national civil aviation school). [Downloadable!]
  2. Elisabetta Iossa & David Martimort, 2008. "The Simple Micro-Economics of Public-Private Partnerships," CEIS Research Paper 139, Tor Vergata University, CEIS, revised 19 Dec 2008. [Downloadable!]
    Other versions:
  3. John Bennett & Elisabetta Iossa, 2006. "Delegation of Contracting in the Private Provision of Public Services," Review of Industrial Organization, Springer, vol. 29(1), pages 75-92, September. [Downloadable!] (restricted)
    Other versions:
  4. Helene Bouscasse & François Destandau & Serge Garcia, 2008. "Analyse économétrique des coûts des services d’eau potable et qualité des prestations offertes aux usagers," Working Papers - Cahiers du LEF 2008-02, Laboratoire d'Economie Forestiere, AgroParisTech-INRA. [Downloadable!]
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