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Ownership and Production Costs Choosing Between Public Production and Contracting Out

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  • Ohlsson, H.

Abstract

Many comparisons of the performance of public and private producers use a public/private ownership dummy varaible to capture cost differences in cross section data. This is appropriate if the producer choice is random. The dummy variable model is, however, logically inconsistent if the producer choice depends on cost differences.

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Bibliographic Info

Paper provided by Uppsala - Working Paper Series in its series Papers with number 1998-6.

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Length: 16 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:uppaal:1998-6

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Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: OWNERSHIP ; COMPETITION ; COSTS ; PRIVATIZATION;

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References

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  17. Dubin, Jeffrey A & Navarro, Peter, 1988. "How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 217-41, Fall.
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  22. Stevens, Barbara J, 1978. "Scale, Market Structure, and the Cost of Refuse Collection," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 438-48, August.
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  24. Vining, Aidan R & Boardman, Anthony E, 1992. " Ownership versus Competition: Efficiency in Public Enterprise," Public Choice, Springer, vol. 73(2), pages 205-39, March.
  25. Anton Marcinèin & Sweder Wijnbergen, 1997. "The impact of Czech privatization methods on enterprise performance incorporating initial selection-bias correction," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(2), pages 289-304, November.
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