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The Provision Of Local Public Services Through Mixed Enterprises: The Italian Case

  • G. BOGNETTI
  • L. ROBOTTI

The rules regulating the creation of mixed enterprises companies (public-private companies) for the provision of local public services have been subjected, in Italy, to a rather complex evolution over time. The new rules introduced allow the creation of a mixed private public enterprise, with either public or private majority; in any case the private shareholder must be selected through a public tender procedure. The data seems to show that mixed enterprises have been used by municipalities as a tool that allows the exploitation of economies of scale and of scope, without necessarily losing control of the leadership and direction of the local utility. Better flexibility of mixed enterprises is also shown by the proportion of mixed enterprises acting outside the territory which is higher than the proportion of public enterprises similarly engaged. Moreover the presence of multi-service units is proportionally higher in mixed enterprises. Copyright 2007 The Authors Journal compilation � CIRIEC 2007.

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Article provided by Wiley Blackwell in its journal Annals of Public and Cooperative Economics.

Volume (Year): 78 (2007)
Issue (Month): 3 (09)
Pages: 415-437

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Handle: RePEc:bla:annpce:v:78:y:2007:i:3:p:415-437
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  1. Schmitz, Patrick W., 2000. "Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered," MPRA Paper 13447, University Library of Munich, Germany.
  2. G. Bognetti & L. Robotti, 2003. "The Reform of Local Public Utilities in Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(1), pages 117-137, 03.
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