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

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  • G. BOGNETTI
  • L. ROBOTTI

Abstract

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.

Suggested Citation

  • G. Bognetti & L. Robotti, 2007. "The Provision Of Local Public Services Through Mixed Enterprises: The Italian Case," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(3), pages 415-437, September.
  • Handle: RePEc:bla:annpce:v:78:y:2007:i:3:p:415-437
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    References listed on IDEAS

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    1. 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, March.
    2. Patrick W. Schmitz, 2000. "Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 394-411, August.
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    Cited by:

    1. Laura DELPONTE & Maddalena SORRENTINO & Matteo TURRI & Daniela VANDONE, 2013. "The transformation of Milan's city energy enterprise in a leading national industrial group," CIRIEC Working Papers 1303, CIRIEC - Université de Liège.
    2. Cambini Carlo & Filippini Massimo & Piacenza Massimiliano & Vannoni Davide, 2011. "Corporatization and Firm Performance: Evidence from Publicly-Provided Local Utilities," Review of Law & Economics, De Gruyter, vol. 7(1), pages 191-213, July.
    3. da Cruz, Nuno F. & Marques, Rui Cunha, 2012. "Mixed companies and local governance: no man can serve two masters," LSE Research Online Documents on Economics 59778, London School of Economics and Political Science, LSE Library.
    4. Daniel Albalate & Germà Bel & Xavier Fageda, 2012. "“Beyond pure public and pure private management models: Mixed firms in the European Airport Industry”," IREA Working Papers 201221, University of Barcelona, Research Institute of Applied Economics, revised Dec 2012.
    5. Alberto Cavaliere & Mario Maggi & Francesca Stroffolini, 2015. "A Normative Analysis of Local Public Utilities: Investments in Water Networks," IEFE Working Papers 80, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    6. Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), 2013. "The Challenge of Local Government Size," Books, Edward Elgar Publishing, number 15294.
    7. repec:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9426-z is not listed on IDEAS
    8. Andrea Calabrò & Mariateresa Torchia & Francesco Ranalli, 2013. "Ownership and control in local public utilities: the Italian case," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 835-862, November.
    9. Silvia FISSI & Elena GORI & Alberto ROMOLINI, 2013. "Local Authority versus Local Public Utilities: A Governance Issue," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2013(20), pages 35-48, June.
    10. Fabio Monteduro, 2014. "Public–private versus public ownership and economic performance: evidence from Italian local utilities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 29-49, February.
    11. Romano, Giulia & Guerrini, Andrea, 2014. "The effects of ownership, board size and board composition on the performance of Italian water utilities," Utilities Policy, Elsevier, vol. 31(C), pages 18-28.
    12. repec:rom:rampas:v:2015:y:2015:i:25:p:55-77 is not listed on IDEAS
    13. Silvia Fissi & Elena Gori & Alberto Romolini, 2013. "La governance dei comuni sui servizi pubblici locali," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2013(2), pages 87-110.
    14. Todorović Ivan & Komazec Stefan & Čudanov Mladen, 2013. "Different Successful Patterns for Implementing Holding Model in Public Sector," Business Systems Research, De Gruyter Open, vol. 4(2), pages 58-67, December.
    15. Mildred E. Warner, 2012. "Does Local Government Size Matter? Privatization and Hybrid Systems of Local Service Delivery," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1212, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    16. A. Asquer, 2014. "Explaining Partial Privatization Of Public Service Provision: The Emergence Of Mixed Ownership Water Firms In Italy (1994–2009)," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 11-30, March.
    17. Douglas SWARTS & Mildred E. WARNER, 2014. "Hybrid Firms And Transit Delivery: The Case Of Berlin," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 127-146, March.
    18. Mildred E. Warner, 2013. "Does local government size matter? Privatization and hybrid systems of local service delivery," Chapters,in: The Challenge of Local Government Size, chapter 11, pages 263-288 Edward Elgar Publishing.
    19. Huanming WANG & Mildred E. WARNER & Yuanhong TIAN & Dajian ZHU, 2014. "Public Owner With Business Delivery Mode In China: Case Study Of The Shanghai Public Bus System," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 147-164, March.
    20. Gerli, Paolo & Van der Wee, Marlies & Verbrugge, Sofie & Whalley, Jason, 2017. "The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies," 28th European Regional ITS Conference, Passau 2017 169461, International Telecommunications Society (ITS).
    21. Marques, Rui Cunha & Berg, Sanford V, 2010. "Revisiting the strengths and limitations of regulatory contracts in infrastructure industries," MPRA Paper 32890, University Library of Munich, Germany.
    22. Alberto Cavaliere & Mario Maggi & Francesca Stroffolini, 2015. "Investments in Water Networks: A Normative Analysis of Local Public Utilities," DEM Working Papers Series 098, University of Pavia, Department of Economics and Management.
    23. Guerrini, Andrea & Romano, Giulia, 2013. "The process of tariff setting in an unstable legal framework: An Italian case study," Utilities Policy, Elsevier, vol. 24(C), pages 78-85.

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