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Public Versus Private Provision of Governmental Services: The Case of Danish Fire Protection Services

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  • Ole P. Kristensen

    (Institute of Political Science, University of Aarhus, Denmark)

Abstract

Comparisons of the costs of private and public production of the same service are of interest because governmental services do not have to be produced by public institutions. The production may be contracted out to private companies. The paper presents an empirical analysis of costs of private and public provision of fire protection in Denmark. Strict state regulation of municipal fire protection services makes the costs of public and private production more comparable than is often the case. The findings show substantial cost differences in favour of private production. In the discussion, this difference is primarily attributed to economies of scale and competition from alternative sources of supply related to private production of fire protection services.

Suggested Citation

  • Ole P. Kristensen, 1983. "Public Versus Private Provision of Governmental Services: The Case of Danish Fire Protection Services," Urban Studies, Urban Studies Journal Limited, vol. 20(1), pages 1-9, February.
    • Handle: RePEc:sae:urbstu:v:20:y:1983:i:1:p:1-9
    DOI: 10.1080/713703172
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    References listed on IDEAS

    as
    1. Brueckner, Jan K., 1981. "Congested public goods: The case of fire protection," Journal of Public Economics, Elsevier, vol. 15(1), pages 45-58, February.
    2. Robert Deacon, 1979. "The expenditure effects of alternative public supply institutions," Public Choice, Springer, vol. 34(3), pages 381-397, September.
    3. 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.
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