Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs

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Main Author: Germà Bel
Format: Artículo científico
Language:en
Published: Universidade de Santiago de Compostela 2006
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author Germà Bel
author_facet Germà Bel
contents Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs Germà Bel Xavier Fageda Estudios Territoriales out H70 R51 contracting privatization In this paper, we analyze the use of intermunicipal cooperation as apossible mechanism for small municipalities to deliver efficiently localservices. The main hypothesis to be analyzed is that smallmunicipalities may use intermunicipal cooperation to exploit scaleeconomies as an alternative to privatization. In this way, lowertransaction costs might be a cost advantage that intermunicipalcooperation provides in relation to privatization. In order to test ourhypothesis, we first review theories that provide useful insights on costadvantages of different production forms. Then, we analyze extensivedata for Spain concerning solid waste collection and water distributionservices, which are the local services more commonly studied for theirmajor economic relevance. From such data analysis, we conclude thatcooperation is more frequent when production is public, while privateproduction is more frequent when the service is provided by themunicipality. Additionally, we show that production costs are lowerwhen intermunicipal cooperation takes place. 2006 artículo científico 1697-6223 https://www.redalyc.org/articulo.oa?id=50400601 en http://www.redalyc.org/revista.oa?id=504 Urban Public Economics Review application/pdf Universidade de Santiago de Compostela Urban Public Economics Review (España) Num.6
format Artículo científico
id redalyc_50400601
institution Redalyc
language en
publishDate 2006
publisher Universidade de Santiago de Compostela
spellingShingle Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs
Germà Bel
Estudios Territoriales
out
H70
R51
contracting
privatization
Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs Germà Bel Xavier Fageda Estudios Territoriales out H70 R51 contracting privatization In this paper, we analyze the use of intermunicipal cooperation as apossible mechanism for small municipalities to deliver efficiently localservices. The main hypothesis to be analyzed is that smallmunicipalities may use intermunicipal cooperation to exploit scaleeconomies as an alternative to privatization. In this way, lowertransaction costs might be a cost advantage that intermunicipalcooperation provides in relation to privatization. In order to test ourhypothesis, we first review theories that provide useful insights on costadvantages of different production forms. Then, we analyze extensivedata for Spain concerning solid waste collection and water distributionservices, which are the local services more commonly studied for theirmajor economic relevance. From such data analysis, we conclude thatcooperation is more frequent when production is public, while privateproduction is more frequent when the service is provided by themunicipality. Additionally, we show that production costs are lowerwhen intermunicipal cooperation takes place. 2006 artículo científico 1697-6223 https://www.redalyc.org/articulo.oa?id=50400601 en http://www.redalyc.org/revista.oa?id=504 Urban Public Economics Review application/pdf Universidade de Santiago de Compostela Urban Public Economics Review (España) Num.6
title Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs
topic Estudios Territoriales
out
H70
R51
contracting
privatization
url https://www.redalyc.org/articulo.oa?id=50400601