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Perspectives on Public Sector Outsourcing: Quasi-markets and Prices

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  • Henrik Jordahl

Abstract

Public sector outsourcing, in the form of private production of tax-financed services, is on the increase with economic and social consequences for consumers, taxpayers, and employees. The development has given rise to so-called quasi-markets with choice and competition between public, for-profit, and non-profit providers. By introducing the main characteristics of quasi-markets with a focus on prices, this article provides background perspectives. It sets the stage for the other six articles on public sector outsourcing in this special issue of the journal.

Suggested Citation

  • Henrik Jordahl, 2019. "Perspectives on Public Sector Outsourcing: Quasi-markets and Prices," CESifo Economic Studies, CESifo Group, vol. 65(4), pages 343-348.
    • Handle: RePEc:oup:cesifo:v:65:y:2019:i:4:p:343-348.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifz015
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    More about this item

    Keywords

    outsourcing; quasi-markets; remuneration; pay for performance; privatization;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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