Germà Bel () (Faculty of Economics, University of Barcelona) Xavier Fageda () (Faculty of Economics, University of Barcelona) Melania Mur () (University of Zaragoza)
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This paper examines factors influencing privatization in solid waste collection and water distribution. We take advantage of data for a sample of municipalities of Aragon to identify the most important factors in small municipalities. The results of empirical analysis show that, for both services, the financial situation of the municipality influences significantly in delivery choices of small municipalities, while ideological factors are not relevant. The motivations related to costs differ according to the specific characteristics of the considered service. In this regard, the dispersion of population strata and inter-municipal cooperation play a particularly relevant role in small municipalities.
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number
200908.