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Is Private Delivery of Public Services Really Cheaper? Evidence from Public Road Maintenance in Denmark

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  • Blom-Hansen, Jens

Abstract

It is a general finding that cost savings may be obtained by involving the private sector in public service production. This fact should be of particular interest to countries with large public sectors, such as the Scandinavian countries, where private involvement has a large potential. This paper investigates this potential by focusing on the Danish road sector. 275 municipalities are responsible for the maintenance of approximately 60,000 km of Denmark's 70,000 km public roads. The analysis confirms the international evidence: Involving the private sector also seems to make it possible for the public sector to obtain large cost savings in the Scandinavian countries. Copyright 2003 by Kluwer Academic Publishers

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  • Blom-Hansen, Jens, 2003. "Is Private Delivery of Public Services Really Cheaper? Evidence from Public Road Maintenance in Denmark," Public Choice, Springer, vol. 115(3-4), pages 419-438, June.
  • Handle: RePEc:kap:pubcho:v:115:y:2003:i:3-4:p:419-38
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Vining, Aidan R & Boardman, Anthony E, 1992. "Ownership versus Competition: Efficiency in Public Enterprise," Public Choice, Springer, vol. 73(2), pages 205-239, March.
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    Cited by:

    1. Jamasb, T. & Söderberg, M., 2009. "Yardstick and Ex-post Regulation by Norm Model: Empirical Equivalence, Pricing Effect, and Performance in Sweeden," Cambridge Working Papers in Economics 0908, Faculty of Economics, University of Cambridge.
    2. Andersson, Fredrik & Jordahl, Henrik, 2011. "Outsourcing Public Services: Ownership, Competition, Quality and Contracting," Working Paper Series 874, Research Institute of Industrial Economics.
    3. Iversen, Evald Bundgaard & Cuskelly, Graham, 2015. "Effects of different policy approaches on sport facility utilisation strategies," Sport Management Review, Elsevier, vol. 18(4), pages 529-541.
    4. Paul H. Jensen & Robin E. Stonecash, 2004. "The Efficiency of Public Sector Outsourcing Contracts: A Literature Review," Melbourne Institute Working Paper Series wp2004n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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