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Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services

Journal of policy analysis and management, 2010-06, Vol.29 (3), p.553-577 [Peer Reviewed Journal]

Copyright © 2010 Association for Public Policy Analysis and Management ;2010 by the Association for Public Policy Analysis and Management ;Copyright Wiley Periodicals Inc. Summer 2010 ;ISSN: 0276-8739 ;EISSN: 1520-6688 ;DOI: 10.1002/pam.20509 ;CODEN: JPAMD7

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Title:
Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services
Author: Bel, Germà ; Fageda, Xavier ; Warner, Mildred E.
Subjects: Audits (Verification) ; Capital costs ; Competition ; Cost control ; Cost Effectiveness ; Cost efficiency ; Cost reduction ; Cost savings ; Delivery Systems ; Economic Impact ; Economic policy ; Government services ; Innovation ; Literature Reviews ; Local government ; Meta Analysis ; Multiple Regression Analysis ; Ownership ; Policy Analysis ; Private costs ; Private sector ; Privatization ; Production costs ; Productivity ; Public services ; Regression analysis ; Sanitation ; Solid wastes ; Studies ; Transaction costs ; Waste management ; Waste management industry ; Water ; Water supply ; Water utilities
Is Part Of: Journal of policy analysis and management, 2010-06, Vol.29 (3), p.553-577
Description: Privatization of local government services is assumed to deliver cost savings, but empirical evidence for this from around the world is mixed. We conduct a metaregression analysis of all econometric studies examining privatization of water distribution and solid waste collection services and find no systematic support for lower costs with private production. Differences in study results are explained by differences in time period of the analyses, service characteristics, and policy environment. We do not find a genuine empirical effect of cost savings resulting from private production. The results suggest that to ensure cost savings, more attention be given to the cost characteristics of the service, the transaction costs involved, and the policy environment stimulating competition, rather than to the debate over public versus private delivery of these services.
Publisher: Hoboken: Wiley Subscription Services, Inc., A Wiley Company
Language: English
Identifier: ISSN: 0276-8739
EISSN: 1520-6688
DOI: 10.1002/pam.20509
CODEN: JPAMD7
Source: Education Resources Information Center (ERIC)
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Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services

Copyright © 2010 Association for Public Policy Analysis and Management ;2010 by the Association for Public Policy Analysis and Management ;Copyright Wiley Periodicals Inc. Summer 2010 ;ISSN: 0276-8739 ;EISSN: 1520-6688 ;DOI: 10.1002/pam.20509 ;CODEN: JPAMD7

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