Between privatization and intermunicipal cooperation: Small municipalities, scale economies and transaction costs
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| Format: | Artículo científico |
| Language: | en |
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Universidade de Santiago de Compostela
2006
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| _version_ | 1876482566646661120 |
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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 |