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Outsourcing Public Services: Contractibility, Cost, and Quality
Stockholm University, Faculty of Social Sciences, Stockholm Business School. Research Institute of Industrial Economics (IFN), Sweden.
Number of Authors: 32019 (English)In: CESifo Economic Studies, ISSN 1610-241X, E-ISSN 1612-7501, Vol. 65, no 4, p. 349-372Article in journal (Refereed) Published
Abstract [en]

We review the literature on public sector outsourcing to explore if the theoretical predictions from the incomplete contracts literature hold up to recent empirical evidence. Guided by theory, we arrange services according to the type and magnitude of their contractibility problems. The empirical studies point at rather favourable outsourcing outcomes, in terms of costs and quality, for services without severe contracting problems. The picture is more mixed for services with tougher contracting problems, with the weight of the evidence in favour of public provision. This difference between services is largely in line with the property-rights framework and theories of incomplete contracts.

Place, publisher, year, edition, pages
2019. Vol. 65, no 4, p. 349-372
Keywords [en]
privatization, property rights, publicly provided goods
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-178702DOI: 10.1093/cesifo/ifz009ISI: 000506800300002OAI: oai:DiVA.org:su-178702DiVA, id: diva2:1392424
Available from: 2020-02-07 Created: 2020-02-07 Last updated: 2020-02-07Bibliographically approved

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