Do public sector reforms get rusty? An empirical analysis on privatization of solid waste collection
Recent empirical evidence, from countries in the European Union in particular, are much more ambiguous on the costs savings from private production of local public services than previous literature used to be. In this paper, an explanatory model of factors driving costs in solid waste collection is specified and estimated, using a sample on Spanish municipalities. Indeed, this paper presents some first empirical parametrical evidence on this issue for this country. Results obtained in the estimation indicate no significant effects of the mode of production (public/private) on costs borne by municipalities. As we find no effect of the mode of production on costs, we put forward two hypotheses. On one hand, progressive concentration and bidding competition decrease in the privatized sector may have outweighed eventual gains coming from privatization. On the other hand, the threat that privatization may represent for public unit managers may have stimulated them to search for alternative management reforms. In this sense, this paper introduces for the first time in the empirical literature factors such as (1) the existence of inter-municipal cooperation; and (2) whether the reform is old or new when analyzing the factors explaining the municipal costs for this service. The results suggest the inter-municipal cooperation and recent privatization are associated with lower costs. Instead, old privatization is not associated with lower costs.
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.:
- Suzanne Reimer, 1999. "Contract Service Firms in Local Authorities: Evolving Geographies of Activity," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 121-130.
- David E. M. Sappington & Joseph E. Stiglitz, 1987.
"Privatization, Information and Incentives,"
NBER Working Papers
2196, National Bureau of Economic Research, Inc.
- E. Dijkgraaf & R. Gradus, 2003.
"Cost Savings of Contracting Out Refuse Collection,"
Springer, vol. 30(2), pages 149-161, June.
- Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1995.
"Privatization in the United States,"
NBER Working Papers
5113, National Bureau of Economic Research, Inc.
- 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.
- Ohlsson, H., 1998.
"Ownership and Production Costs Choosing Between Public Production and Contracting Out,"
1998-6, Uppsala - Working Paper Series.
- 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.
- Ohlsson, Henry, 1998. "Ownership and Production Costs - Choosing Between Public Production and Contracting Out," Working Paper Series 1998:6, Uppsala University, Department of Economics.
- Andres Gomez-Lobo & Stefan Szymanski, 1997. "A Law of Large numbers: Bidding and competitive tendering for refuse collection contracts," IFS Working Papers W97/09, Institute for Fiscal Studies.
- Stefan Szymanski, 1993. "Cheap rubbish? Competitive tendering and contracting out in refuse collection, 1981-88," Fiscal Studies, Institute for Fiscal Studies, vol. 14(3), pages 109-30, August.
- 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.
- Edward L. Glaeser, 2001. "Public Ownership in the American City," NBER Working Papers 8613, National Bureau of Economic Research, Inc.
- Domberger, S & Meadowcroft, S & Thompson, D J, 1986. "Competitive tendering and efficiency: the case of refuse collection," Fiscal Studies, Institute for Fiscal Studies, vol. 7(4), pages 69-87, November.
- John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
- Stephen Minicucci & John D. Donahue, 2004. "A simple estimation method for aggregate government outsourcing," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 489-507.
- John Cubbin & Simon Domberger & Shirley Meadowcroft, 1987. "Competitive tendering and refuse collection: identifying the sources of efficiency gains," Fiscal Studies, Institute for Fiscal Studies, vol. 8(3), pages 49-58, August.
- 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, vol. 4(2), pages 217-41, Fall.
- 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.
- E. Dijkgraaf & R. H. J. M. Gradus & B. Melenberg, 2003. "Contracting out refuse collection," Empirical Economics, Springer, vol. 28(3), pages 553-570, July.
- 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.
- Barbara Antonioli & Massimo Filippini, 2002. "Optimal Size in the Waste Collection Sector," Review of Industrial Organization, Springer, vol. 20(3), pages 239-252, May.
- 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.
- 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.
- 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.
- 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 189-94, August.
- 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.
- 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 465-81, October.
- Yolanda K. Kodrzycki, 1994. "Privatization of local public services: lessons for New England," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 31-46.
- Stefan Szymanski, 1996. "The impact of compulsory competitive tendering on refuse collection services," Fiscal Studies, Institute for Fiscal Studies, vol. 17(3), pages 1-19, August.
- Jacob Paroush & Jonas Prager, 1999. "Criteria for contracting-out decisions when contractors can deceive," Atlantic Economic Journal, International Atlantic Economic Society, vol. 27(4), pages 376-383, December.
- Edward L. Glaeser, 2001. "Public Ownership in the American City," Harvard Institute of Economic Research Working Papers 1930, Harvard - Institute of Economic Research.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0409014. 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: (EconWPA)
If references are entirely missing, you can add them using this form.