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Economías de escala, densidad y alcance en la provisión pública de infraestructura básica municipal

Author

Listed:
  • Angel Prieto

    () (Iranasa-CSIC)

  • José L. Zofio

    () (Universidad Autónoma de Madrid)

  • Inmaculada Alvarez

    () (Universidad Autónoma de Madrid)

Abstract

Municipalities manage their budgets in a complex national, regional, and local legal framework while being under the cross-pressure between of citizens claiming for better public goods and higher-level Administrations requiring higher allocative efficiency in public spending. The legal framework determines the scheme of intergovernmental finance based on well specified cooperation programs for the provision of basic infrastructure that result in different stocks of local infrastructures. We estímate translog cost functions to quantify economies of scale, density and scope in the provision of infrastructure dealing with water supply, sewerage and cleansing of residual waters, paving and lighting. We find that these economies are present to a large degree due to the existing rural structure, characterized by a suboptimal municipal size. This carries an excess cost in the provision of infrastructure in terms of the existing infrastructure stock and the amount of intergovernmental finance. Taking Castilla y Leonas the geographical reference, we estimate infrastructure stocks relying on the Local Infrastructure and Equipment Survey while developing a new price database based on best practice engineering approaches.

Suggested Citation

  • Angel Prieto & José L. Zofio & Inmaculada Alvarez, 2009. "Economías de escala, densidad y alcance en la provisión pública de infraestructura básica municipal," Hacienda Pública Española, IEF, vol. 190(3), pages 59-94, September.
  • Handle: RePEc:hpe:journl:y:2009:v:190:i:3:p:59-94
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    References listed on IDEAS

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    Cited by:

    1. Carvalho, Pedro & Marques, Rui Cunha & Berg, Sanford, 2012. "A meta-regression analysis of benchmarking studies on water utilities market structure," Utilities Policy, Elsevier, vol. 21(C), pages 40-49.
    2. repec:eee:touman:v:62:y:2017:i:c:p:234-240 is not listed on IDEAS

    More about this item

    Keywords

    Municipalities; Public infrastructure; Translog cost function; Economies of scale; density and scope.;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H1 - Public Economics - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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