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Outsourcing Public Services: Contractibility, Cost, and Quality
Department of Economics, Lund University, Lund, Sweden; Research Institute of Industrial Economics (IFN), Stockholm, Sweden.
Örebro University, Örebro University School of Business. Research Institute of Industrial Economics (IFN), Stockholm, Sweden, CESifo, Stockholm, Sweden, 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)Report (Other academic)
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
Örebro: Örebro University, School of Business , 2019. , p. 37
Series
Working Papers, School of Business, ISSN 1403-0586 ; 4
Keywords [en]
Privatization, property rights, publicly provided goods
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-76501OAI: oai:DiVA.org:oru-76501DiVA, id: diva2:1352290
Funder
The Jan Wallander and Tom Hedelius FoundationSwedish Social Insurance Agency
Note

JEL classification: D23, H11, L33

Available from: 2019-09-18 Created: 2019-09-18 Last updated: 2019-09-18Bibliographically approved

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Outsourcing Public Services: Contractibility, Cost, and Quality(352 kB)30 downloads
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Type fulltextMimetype application/pdf

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Andersson, FredrikJordahl, Henrik

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf