Understanding the Dynamic Effect of Contracting Out on the Delivery of Local Public Services

Juan Máñez, Gemma Pérez-lópez, Diego Prior, José luis Zafra-gómez

Research output: Contribution to journalArticleResearchpeer-review

20 Citations (Scopus)

Abstract

© 2015 Regional Studies Association. Máñez J., Pérez-López G., Prior D. and Zafra-Gómez J. L. Understanding the dynamic effect of contracting out on the delivery of local public services, Regional Studies. Contracting out is a mechanism through which the delivery of public services can be made more efficient. However, the process has yielded conflicting results. This paper presents a dynamic, mixed approach, incorporating an intertemporal frontier and a matching technique, to measure the short- and long-term effects of the implementation of contracting out on the efficiency of local public service delivery. The study demonstrates the existence of temporary inefficiency arising from the change in service management when contracting out takes place, followed by an increase in efficiency among municipalities that contract out, with respect to comparable municipalities that do not do so.
Original languageEnglish
Pages (from-to)2069-2080
JournalRegional Studies
Volume50
Issue number12
DOIs
Publication statusPublished - 1 Dec 2016

Keywords

  • Contracting out
  • Efficiency
  • Local government

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