IDEAS home Printed from
   My bibliography  Save this paper

Public vs private production efficiency: A theoretical and empirical comparison


  • Pommerehne, Werner W.
  • Frey, Bruno S.


The relative efficiency of private and public production of a public service (in particular households' refuse collection) is studied using the theory of property rights and the economic theory of bureaucracy. Both kinds of institutional organization of production result in inefficiencies if realistic conditions are considered. The empirical analysis of refuse collection of 103 Swiss cities shows evidence that private production may be more efficient. If refuse collection were turned over to private enterprise on the basis of some such evidence, the government's task does not end but rather is shifted, only. It has to find ways and means to set the conditions such that private producers function efficiently in the long run. In particular, it must insure that competitive pressure on costs persists.

Suggested Citation

  • Pommerehne, Werner W. & Frey, Bruno S., 1976. "Public vs private production efficiency: A theoretical and empirical comparison," Discussion Papers, Series I 73, University of Konstanz, Department of Economics.
  • Handle: RePEc:zbw:kondp1:73

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Rogers Ahlbrandt, 1973. "Efficiency in the provision of fire services," Public Choice, Springer, vol. 16(1), pages 1-15, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:zbw:kondp1:73. 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: (ZBW - German National Library of Economics). General contact details of provider: .

    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.