IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Reforming the local public sector: economics and politics in privatization of water and solid waste

  • Germa Bel
  • Xavier Fageda

Several empirical studies have analyzed the factors that influence local privatization. We examine the influence of transaction costs and political factors on local governments' choices through new variables. We consider two relevant services accounting for different amounts of transaction costs: water and solid waste delivery. Our results show that privatization is less common for water, which has higher transaction costs. Furthermore, we find that municipalities with a conservative ruling party privatize more often regardless of the ideological orientation of the constituency. Finally, we find that intermunicipal cooperation may be a suitable organizational form for some municipalities.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/17487870802134884&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 11 (2008)
Issue (Month): 1 ()
Pages: 45-65

as
in new window

Handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:45-65
Contact details of provider: Web page: http://www.tandfonline.com/GPRE20

Order Information: Web: http://www.tandfonline.com/pricing/journal/GPRE20

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Martin J. Osborne & Al Slivinksi, 1995. "A Model of Political Competition with Citizen-Candidates," Department of Economics Working Papers 1995-01, McMaster University.
  2. Oliver Hart & John Moore, 1988. "Property Rights and the Nature of the Firm," Working papers 495, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Tim Besley & Stephen Coate, . ""An Economic Model of Representative Democracy''," CARESS Working Papres 95-02, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  4. Elbert Dijkgraaf & Raymond Gradus, 2004. "Cost savings of contracting out refuse collection," Public Economics 0409002, EconWPA.
  5. Florencio Lopez-deSilanes & Andrei Shleifer & Rober Vishny, 1995. "Privatization in the United States," Harvard Institute of Economic Research Working Papers 1723, Harvard - Institute of Economic Research.
  6. Antonio Miralles, 2008. "The link between service privatization and price distribution among consumer types: municipal water services in the Spanish region of Catalonia," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 26(1), pages 159-172, February.
  7. Hart, Oliver & Shleifer, Andrei & Vishny, Robert W, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1127-61, November.
  8. 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.
  9. Michael D. Whinston, 2003. "On the Transaction Cost Determinants of Vertical Integration," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(1), pages 1-23, April.
  10. Grossman, Sanford J & Hart, Oliver, 1985. "The Cost and Benefits of Ownership: A Theory of Vertical and Lateral Integration," CEPR Discussion Papers 70, C.E.P.R. Discussion Papers.
  11. Nelson, Michael A, 1997. "Municipal Government Approaches to Service Delivery: An Analysis from a Transactions Cost Perspective," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 82-96, January.
  12. Christoffersen, Henrik & Paldam, Martin, 2003. " Markets and Municipalities: A Study of the Behavior of the Danish Municipalities," Public Choice, Springer, vol. 114(1-2), pages 79-102, January.
  13. E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
  14. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  15. Robert McGuire & Robert Ohsfeldt & T. Cott, 1987. "The determinants of the choice between public and private production of a publicly funded service," Public Choice, Springer, vol. 54(3), pages 211-230, August.
  16. David E. M. Sappington & Joseph E. Stiglitz, 1987. "Privatization, information and incentives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 6(4), pages 567-585.
  17. Williamson, Oliver E, 1999. "Public and Private Bureaucracies: A Transaction Cost Economics Perspective," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 306-42, April.
  18. Stéphane Saussier & Claude Ménard, 2000. "Contractual Choice and Performance the Case of Water Supply in France," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 385-404.
  19. E. Dijkgraaf & R. H. J. M. Gradus, 2005. "Collusion in the Dutch waste collection market," Industrial Organization 0502006, EconWPA.
  20. Dubin, Jeffrey A. & Navarro, Peter., 1987. "How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection," Working Papers 633, California Institute of Technology, Division of the Humanities and Social Sciences.
  21. Ferris, James M & Graddy, Elizabeth, 1991. "Production Costs, Transaction Costs, and Local Government Contractor Choice," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 541-54, July.
  22. Jonathan Levin & Steven Tadelis, 2007. "Contracting for Government Services: Theory and Evidence from U.S. Cities," NBER Working Papers 13350, National Bureau of Economic Research, Inc.
  23. David S. Lee & Enrico Moretti & Matthew J. Butler, 2004. "Do Voters Affect Or Elect Policies? Evidence from the U. S. House," The Quarterly Journal of Economics, MIT Press, vol. 119(3), pages 807-859, August.
  24. Ferris, James M & Graddy, Elizabeth, 1994. "Organizational Choices for Public Service Supply," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(1), pages 126-41, April.
  25. Germa Bel & Anton Costas, 2006. "Do Public Sector Reforms Get Rusty? Local Privatization in Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(1), pages 1-24.
  26. Germa Manel Bel Queralt & Antonio Miralles, 2002. "Factors influencing privatization of urban solid waste collection: some evidence from Spain," Working Papers in Economics 74, Universitat de Barcelona. Espai de Recerca en Economia.
  27. Antonio Miralles, 2005. "Political economy of municipal water service privatization in Spain: a duration model analysis," Working Papers in Economics 133, Universitat de Barcelona. Espai de Recerca en Economia.
  28. Trevor L. Brown & Matthew Potoski, 2003. "Managing contract performance: A transaction costs approach," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 275-297.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:jecprf:v:11:y:2008:i:1:p:45-65. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.