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Tax Reduction without Sacrifice: Private-Sector Production of Public Services

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  • James T. Bennett
  • Manuel H. Johnson

Abstract

This article investigates an alternative which permits tax reduction without significant effects on the output of public services: private-sector production of public services. Empirical evidence on a wide variety of services is examined: refuse collection, fire protection, debt collection, health care and hospital services, claims processing, ship repair, and the operation of utilities and airline services. The evidence indicates that the economies achievable are real and not hypothetical; the private-sector provision of public services offers an excellent opportunity for tax reduction without sacrificing services.

Suggested Citation

  • James T. Bennett & Manuel H. Johnson, 1980. "Tax Reduction without Sacrifice: Private-Sector Production of Public Services," Public Finance Review, , vol. 8(4), pages 363-396, October.
    • Handle: RePEc:sae:pubfin:v:8:y:1980:i:4:p:363-396
    DOI: 10.1177/109114218000800401
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
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    6. Frech, H E, III, 1976. "The Property Rights Theory of the Firm: Empirical Results from a Natural Experiment," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 143-152, February.
    7. James Bennett & Manuel Johnson, 1979. "Public versus private provision of collective goods and services: garbage collection revisited," Public Choice, Springer, vol. 34(1), pages 55-63, March.
    8. Clarkson, Kenneth W, 1972. "Some Implications of Property Rights in Hospital Management," Journal of Law and Economics, University of Chicago Press, vol. 15(2), pages 363-384, October.
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    Cited by:

    1. Walter E. Block, 2014. "Justifying a Stateless Legal Order: A Critique of Rand and Epstein," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Spring 20), pages 21-49.
    2. Holger MAHLENKAMP, 2015. "From State To Market Revisited: A Reassessment Of The Empirical Evidence On The Efficiency Of Public (And Privately-Owned) Enterprises," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(4), pages 535-557, December.
    3. Walls, Margaret, 2003. "How Local Governments Structure Contracts with Private Firms: Economic Theory and Evidence on Solid Waste and Recycling Contracts," RFF Working Paper Series dp-03-62, Resources for the Future.
    4. Walter E. Block, 2017. "Radical Privatization: Oceans, Roads,Heavenly Bodies," Romanian Economic Business Review, Romanian-American University, vol. 12(2), pages 41-56, June.
    5. Ofelia Betancor & María Paz Espinosa, 2015. "Privatización, competencia y regulación aeroportuaria:experiencia internacional," Working Papers 2015-03, FEDEA.

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