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Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Number of Authors: 22019 (English)In: CESifo Economic Studies, ISSN 1610-241X, E-ISSN 1612-7501, Vol. 65, no 4, p. 446-463Article in journal (Refereed) Published
Abstract [en]

We document that switching from laissez-faire production to public procurement in residential waste collection in Finland reduces the number of firms active in the local market, but induces a statistically significant and large decrease in unit prices on average. While public procurement, thus, seems to be desirable from the citizens' perspective, not all municipalities adopt public procurement. We provide descriptive evidence that municipal council composition is associated with the chosen regime. This suggests that local politics may be one obstacle for the efficient provision of local public goods.

Place, publisher, year, edition, pages
2019. Vol. 65, no 4, p. 446-463
Keywords [en]
free markets, waste collection, public procurement
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-178703DOI: 10.1093/cesifo/ifz001ISI: 000506800300006OAI: oai:DiVA.org:su-178703DiVA, id: diva2:1392276
Available from: 2020-02-07 Created: 2020-02-07 Last updated: 2020-02-07Bibliographically approved

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