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Is the time dimension really important in research into contracting out?

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  • Jorge Guardiola

    ()
    (Universidad de Granada. Deparment of Applied Economics)

  • Francisco González-Gómez

    ()
    (Universidad de Granada. Deparment of Applied Economics)

  • Miguel A. García-Rubio

    ()
    (Universidad de Granada. Deparment of Applied Economics)

Abstract

In a recent study into the literature, Bel and Fageda (2007) highlighted the lack of the time dimension in research dealing with explanatory factors in the decision to contract out municipal services. In this paper we attempt to evaluate if the argument of Bel and Fageda is true. We do this by means of two methodological contrasts in the designing of variables from a dataset containing 744 municipalities in Southern Spain. From our empirical analysis, we conclude that the consideration of the time dimension does contribute to a better specification of the model, and not considering it could lead to a misunderstanding of the motivation behind the decision.

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File URL: http://www.ugr.es/~teoriahe/RePEc/gra/fegper/FEGWP208.pdf
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Bibliographic Info

Paper provided by Faculty of Economics and Business (University of Granada) in its series FEG Working Paper Series with number 08/02.

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Length: 27 pages
Date of creation: 15 Nov 2008
Date of revision:
Handle: RePEc:gra:fegper:08/02

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Keywords: Water utilities; contracting out; privatization; public services; local government;

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  1. Mildred Warner & Robert Hebdon, 2001. "Local Government Restructuring: Privatization and Its Alternatives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 315-336.
  2. Stéphane Saussier & Claude Ménard, 2000. "Contractual Choice and Performance the Case of Water Supply in France," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 385-404.
  3. Paul H. Jensen & Robin E. Stonecash, 2005. "Incentives and the Efficiency of Public Sector-outsourcing Contracts," Journal of Economic Surveys, Wiley Blackwell, vol. 19(5), pages 767-787, December.
  4. Henry Ohlsson, 2003. "Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection," Fiscal Studies, Institute for Fiscal Studies, vol. 24(4), pages 451-476, December.
  5. Arnaud Reynaud & Serge Garcia & Michel Moreaux, 2004. "Measuring Economies of Vertical Integration in Network," Econometric Society 2004 North American Summer Meetings 184, Econometric Society.
  6. Massimo Filippini & Nevenka Hrovatin & Jelena Zorić, 2008. "Cost efficiency of Slovenian water distribution utilities: an application of stochastic frontier methods," Journal of Productivity Analysis, Springer, vol. 29(2), pages 169-182, April.
  7. Torres, Marcelo & Morrison Paul, Catherine J., 2006. "Driving forces for consolidation or fragmentation of the US water utility industry: A cost function approach with endogenous output," Journal of Urban Economics, Elsevier, vol. 59(1), pages 104-120, January.
  8. Domberger, Simon & Jensen, Paul, 1997. "Contracting Out by the Public Sector: Theory, Evidence, Prospects," Oxford Review of Economic Policy, Oxford University Press, vol. 13(4), pages 67-78, Winter.
  9. John K. Ashton, 2003. "Capital Utilisation and Scale in the English and Welsh Water Industry," The Service Industries Journal, Taylor & Francis Journals, vol. 23(5), pages 137-149, November.
  10. E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
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