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Drivers of contracting back in local governments: analysing efficiency, opportunistic political cycles, political corruption and financial factors

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  • Cristina María Campos-Alba
  • Emilio José De La Higuera Molina
  • Gemma Pérez-López
  • José Luis Zafra-Gómez

Abstract

The main aim of this paper is to examine the likelihood of local governments remunicipalising public services that were previously contracted out. To do so, we studied a sample of 141 Spanish municipalities with between 20,000 and 50,000 inhabitants, with particular reference to contracting back operations conducted in the period 2014–2016, using a random-effects panel logit model. We found that local authorities that contracted back public services were mainly influenced by the wish to achieve higher levels of efficiency, by political behaviour in a pre-electoral year, and by political corruption detected in the previous year.

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  • Cristina María Campos-Alba & Emilio José De La Higuera Molina & Gemma Pérez-López & José Luis Zafra-Gómez, 2021. "Drivers of contracting back in local governments: analysing efficiency, opportunistic political cycles, political corruption and financial factors," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 24(3), pages 347-360, July.
    • Handle: RePEc:taf:jpolrf:v:24:y:2021:i:3:p:347-360
    DOI: 10.1080/17487870.2019.1689359
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    Cited by:

    1. Juri Demuth & Hans W. Friederiszick & Steffen Reinhold, 2022. "Reverse Privatization as a Reaction to the Competitive Environment: Evidence from Solid Waste Collection in Germany," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(2), pages 217-261, March.

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