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Outsourcing Public Services: Contractibility, Cost, and Quality
Research Institute of Industrial Economics (IFN), stockholm, Sweden; Department of Economics, Lund University, Lund, Sweden.
Örebro University, Örebro University School of Business. Research Institute of Industrial Economics (IFN), Stockholm, Sweden; CESifo, Munich, Germany; IZA, Bonn, Germany.ORCID iD: 0000-0001-8857-6116
Research Institute of Industrial Economics (IFN), Stockholm, Sweden; Stockholm Business School, Stockholm University, Stockholm, Sweden.
2019 (English)In: CESifo Economic Studies, ISSN 1610-241X, E-ISSN 1612-7501, p. 1-24Article in journal (Refereed) Epub ahead of print
Abstract [en]

We review the literature on public sector outsourcing to explore if the theoretical predictions from the incomplete contracts literature hold up to recent empirical evidence. Guided by theory, we arrange services according to the type and magnitude of their contractibility problems. The empirical studies point at rather favourable outsourcing outcomes, in terms of costs and quality, for services without severe contracting problems. The picture is more mixed for services with tougher contracting problems, with the weight of the evidence in favour of public provision. This difference between services is largely in line with the property-rights framework and theories of incomplete contracts.

Place, publisher, year, edition, pages
Oxford University Press, 2019. p. 1-24
Keywords [en]
Privatization, property rights, publicly provided goods
National Category
Economics and Business Economics
Identifiers
URN: urn:nbn:se:oru:diva-76635DOI: 10.1093/cesifo/ifz009OAI: oai:DiVA.org:oru-76635DiVA, id: diva2:1353321
Note

JEL L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting OutD23 - Organizational Behavior; Transaction Costs; Property RightsH11 - Structure, Scope, and Performance of Government

Available from: 2019-09-23 Created: 2019-09-23 Last updated: 2019-09-23Bibliographically approved

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Outsourcing Public Services: Contractibility, Cost, and Quality(412 kB)29 downloads
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Andersson, FredrikJordahl, Henrik

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3738394041424340 of 157
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  • apa
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  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
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  • Other locale
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Output format
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