IDEAS home Printed from https://ideas.repec.org/a/taf/jpolrf/v9y2006i1p1-24.html
   My bibliography  Save this article

Do Public Sector Reforms Get Rusty? Local Privatization in Spain

Author

Listed:
  • Germa Bel
  • Anton Costas

Abstract

Recent evidence on the savings from private production of local public services has become increasingly ambiguous. Here we specify and estimate a model to explain municipal costs for solid waste collection. As we find no effect of the mode of production on costs, we put forward two hypotheses. First, progressive concentration and decreases in bidding competition may come to outweigh gains from privatization. Second, the threat of privatization may have stimulated public unit managers to search for alternative reforms. The results suggest that both inter-municipal cooperation and recent privatization are associated with lower costs, while old privatization is not.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:jpolrf:v:9:y:2006:i:1:p:1-24 DOI: 10.1080/13841280500513084
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13841280500513084
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1997. "Privatization in the United States," RAND Journal of Economics, The RAND Corporation, pages 447-471.
    2. AndréS GóMez-Lobo & Stefan Szymanski, 2001. "A Law of Large Numbers: Bidding and Compulsory Competitive Tendering for Refuse Collection Contracts," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 105-113, February.
    3. Stefan Szymanski, 1993. "Cheap rubbish? Competitive tendering and contracting out in refuse collection, 1981-88," Fiscal Studies, Institute for Fiscal Studies, pages 109-130.
    4. Mildred Warner & Robert Hebdon, 2001. "Local Government Restructuring: Privatization and Its Alternatives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 315-336.
    5. 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.
    6. Kinnaman, Thomas C. & Fullerton, Don, 2000. "Garbage and Recycling with Endogenous Local Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 419-442, November.
    7. Michael R. Fitzgerald, 1986. "The Promise And Performance Of Privatization: The Knoxville Experience," Review of Policy Research, Policy Studies Organization, vol. 5(3), pages 606-613, February.
    8. 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.
    9. Eoin Reeves & Michael Barrow, 2000. "The Impact of Contracting Out on the Costs of Refuse Collection Services - The Case of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 129-150.
    10. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, pages 111-132.
    11. 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.
    12. Sachs, Jeffrey & Tornell, Aaron & Velasco, Andres, 1995. "The Collapse of the Mexican Peso: What Have We Learned?," Working Papers 95-22, C.V. Starr Center for Applied Economics, New York University.
    13. Dubin, Jeffrey A & Navarro, Peter, 1988. "How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection," Journal of Law, Economics, and Organization, Oxford University Press, pages 217-241.
    14. Simon Domberger & Stephen Rimmer, 1994. "Competitive Tendering and Contracting in the Public Sector: A Survey," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(3), pages 439-453.
    15. Scott J. Callan & Janet M. Thomas, 2001. "Economies of Scale and Scope: A Cost Analysis of Municipal Solid Waste Services," Land Economics, University of Wisconsin Press, vol. 77(4), pages 548-560.
    16. Jacob Paroush & Jonas Prager, 1999. "Criteria for contracting-out decisions when contractors can deceive," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 376-383.
    17. Barbara Antonioli & Massimo Filippini, 2002. "Optimal Size in the Waste Collection Sector," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(3), pages 239-252, May.
    18. Bodkin, Ronald G & Conklin, David W, 1971. "Scale and Other Determinants of Municipal Government Expenditures in Ontario: A Quantitative Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(3), pages 465-481, October.
    19. Stefan Szymanski, 1996. "The impact of compulsory competitive tendering on refuse collection services," Fiscal Studies, Institute for Fiscal Studies, pages 1-19.
    20. Blomquist, Soren & Christiansen, Vidar, 1999. "The political economy of publicly provided private goods," Journal of Public Economics, Elsevier, pages 31-54.
    21. Stevens, Barbara J, 1978. "Scale, Market Structure, and the Cost of Refuse Collection," The Review of Economics and Statistics, MIT Press, pages 438-448.
    22. E. Dijkgraaf & R. Gradus, 2003. "Cost Savings of Contracting Out Refuse Collection," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, pages 149-161.
    23. McGuire, Robert A & Ohsfeldt, Robert L & Van Cott, T Norman, 1990. "More on the Choice between Public and Private Production of a Publicly Funded Service," Public Choice, Springer, vol. 66(2), pages 189-194, August.
    24. John Cubbin & Simon Domberger & Shirley Meadowcroft, 1987. "Competitive tendering and refuse collection: identifying the sources of efficiency gains," Fiscal Studies, Institute for Fiscal Studies, pages 49-58.
    25. 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.
    26. 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, pages 451-476.
    27. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, January.
    28. Ohlsson, Henry, 1998. "Ownership and Production Costs - Choosing Between Public Production and Contracting Out," Working Paper Series 1998:6, Uppsala University, Department of Economics.
    29. 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.
    30. Nuria Bosch Roca & Francisco Pedraja & Javier Suarez Pandiello, 1999. "Measuring the efficiency in spanish municipal refuse collection services," Working Papers in Economics 46, Universitat de Barcelona. Espai de Recerca en Economia.
    31. E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, pages 553-570.
    32. Antonio Miralles, 2005. "Auction theory, sequential local service privatization, and the effects of geographical scale economies on effective competition," Working Papers in Economics 132, Universitat de Barcelona. Espai de Recerca en Economia.
    33. repec:hrv:faseco:30727606 is not listed on IDEAS
    34. Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1997. "Privatization in the United States," RAND Journal of Economics, The RAND Corporation, pages 447-471.
    35. Domberger, S & Meadowcroft, S & Thompson, D J, 1986. "Competitive tendering and efficiency: the case of refuse collection," Fiscal Studies, Institute for Fiscal Studies, pages 69-87.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:9:y:2006:i:1:p:1-24. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GPRE19 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.