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Contractual Choice and Performance the Case of Water Supply in France

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  • Stéphane Saussier
  • Claude Ménard

Abstract

[eng] There is a vast literature in transaction cost economics on the choice made by firms to integrate or not. To our knowledge, there have been no previous tests for understanding decisions made by governments to provide a service or to outsource. Our paper presents such a test, using a data base on all units supplying water for towns of more than 5000 inhabitants in France. Our results strongly support that : 1) There is an economic rationale to contractual choices in public utilities ; 2) There is no absolute advantage for one specific mode of governance, performance depending on the fitness of the mode of governance to the attributes of the transaction. [fre] Il existe une littérature abondante en économie des coûts de transaction sur le choix d'une entreprise entre faire ou faire faire. À notre connaissance, il n'y a pas de test économétrique de ce type portant sur l'arbitrage que fait un gouvernement entre offrir directement un service ou le confier à un opérateur. Nous présentons un tel test, utilisant une base de données qui porte sur l'ensemble des Unités Distributrices d'Eau pour les villes françaises de plus de 5000 habitants. Nos résultats suggèrent fortement : 1) qu'il y a une logique économique dans les choix contractuels effectués ; 2) qu'il n'y pas d'avantage absolu pour un mode de gouvernance, les performances dépendant de l'adéquation d'un mode aux attributs des transactions.

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File URL: http://dx.doi.org/10.3406/rei.2000.1058
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Bibliographic Info

Article provided by Programme National Persée in its journal Revue d'économie industrielle.

Volume (Year): 92 (2000)
Issue (Month): 1 ()
Pages: 385-404

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Handle: RePEc:prs:recind:rei_0154-3229_2000_num_92_1_1058

Note: DOI:10.3406/rei.2000.1058
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Web page: http://www.persee.fr/web/revues/home/prescript/revue/rei

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Cited by:
  1. Kosec, Katrina, 2013. "The child health implications of privatizing Africa’s urban water supply:," IFPRI discussion papers 1269, International Food Policy Research Institute (IFPRI).
  2. Antonio Miralles, 2005. "Political economy of municipal water service privatization in Spain: a duration model analysis," Working Papers in Economics 133, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Steiner, Sylvia M., 2008. "The Impact of Institutional Frameworks on Private Sector Participation in Water Supply and Sanitation: The case of the management contract for water and wastewater services in the Amman Governorate, J," IEE Working Papers 187, Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum.
  4. repec:hal:cesptp:halshs-00624250 is not listed on IDEAS
  5. Germà Bel & Xavier Fageda, 2006. "Factors explaining local privatization: A meta-regression analysis," Working Papers CREAP2006-03, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2006.
  6. Miguel A. García-Rubio & Francisco González-Gómez & Jorge Guardiola, 2009. "Performance and ownership in the governance of urban water," FEG Working Paper Series 09/03, Faculty of Economics and Business (University of Granada).
  7. Sharon Novak & Scott Stern, 2007. "How Does Outsourcing Affect Performance Dynamics? Evidence from the Automobile Industry," NBER Working Papers 13235, National Bureau of Economic Research, Inc.
  8. Dassiou, X. & Stern, J., 2008. "Infrastructure Contracts: Trust and Institutional Updating," Working Papers 08/06, Department of Economics, City University London.
  9. Eshien Chong & Freddy Huet & Stéphane Saussier & Faye Steiner, 2006. "Public-Private Partnerships and Prices: Evidence from Water Distribution in France," Review of Industrial Organization, Springer, vol. 29(1), pages 149-169, September.
  10. Antonio Miralles Asensio, 2009. "A duration model analysis of privatization of municipal water services," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 17(2), pages 47-75, Autumn.
  11. Alessandro Marra, 2006. "Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities," Bruges European Economic Research Papers 4, European Economic Studies Department, College of Europe.
  12. Germà Bel & Xavier Fageda & Melania Mur, 2010. "¿Por qué se privatizan servicios en los municipios (pequeños)? Evidencia empírica sobre residuos sólidos y agua," Hacienda Pública Española, IEF, vol. 192(1), pages 33-58, March.
  13. Spagnolo, Giancarlo & Bergman, Mats A. & Lundberg, Sofia, 2012. "Privatization and Quality: Evidence from Elderly Care in Sweden," SITE Working Paper Series 19, Stockholm Institute of Transition Economics, Stockholm School of Economics.
  14. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications, The World Bank, number 2703, October.
  15. Christophe Déprés & Gilles Grolleau & Naoufel Mzoughi, 2005. "Analyse exploratoire de quelques stratégies de fourniture ‘non publique’ des biens ‘publics’," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 74, pages 27-45.
  16. Roberto Martínez-Espiñeira & Maria A. García-Valiñas & Francisco González-Gómez, 2007. "Does Private Management Of Water Supply Services Really Increase Prices? An Empirical Analysis," FEG Working Paper Series 07/05, Faculty of Economics and Business (University of Granada).
  17. Alberto Ruiz-Villaverde & Francisco Gónzalez-Gómez, 2011. "The public choice of urban water service management: a multi-criteria approach," Working Papers 1101, Department of Applied Economics II, Universidad de Valencia.
  18. Germa Bel & Xavier Fageda, 2008. "Reforming the local public sector: economics and politics in privatization of water and solid waste," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 45-65.
  19. Jorge Guardiola & Francisco González-Gómez & Miguel A. García-Rubio, 2008. "Is the time dimension really important in research into contracting out?," FEG Working Paper Series 08/02, Faculty of Economics and Business (University of Granada).
  20. Goyal, Ashima, 2004. "Getting water from public private partnerships," MPRA Paper 27788, University Library of Munich, Germany.

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