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Public vs private management of public utilities - The case of urban public transport in Europe

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  • Amaral, Miguel

Abstract

This paper analyses the determinants of the performance differential between the private and public management of urban public transport in Europe. Our analysis supports the view that private management is associated with a lower operating cost. We show, however, that the size of the costs' differential can depend on the interaction of the local authorities' capacity for expertise and the private operators' autonomy margin. In particular, we show that, in certain situations, there might be little difference in operating costs. Thus, in terms of total costs (production and transaction costs), no systematic advantages should be expected from private management.

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  • Amaral, Miguel, 2008. "Public vs private management of public utilities - The case of urban public transport in Europe," Research in Transportation Economics, Elsevier, vol. 22(1), pages 85-90, January.
    • Handle: RePEc:eee:retrec:v:22:y:2008:i:1:p:85-90
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    3. João M. Pinto & Mário Coutinho dos Santos & Pedro Verga Matos, 2021. "Contracting Out Public Transit Services: An Incentive Performance-Based Approach," Working Papers de Economia (Economics Working Papers) 02, Católica Porto Business School, Universidade Católica Portuguesa.
    4. Andrea ZATTI, 2011. "Organizational models in European local public transport: is the new paradigm really dominant," Departmental Working Papers 2011-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    5. Friese, Maria & Heimeshoff, Ulrich & Klein, Gordon J., 2020. "Property rights and transaction costs – The role of ownership and organization in German public service provision," International Journal of Industrial Organization, Elsevier, vol. 72(C).
    6. Thao, Vu Thi & Wegelin, Philipp & von Arx, Widar, 2017. "Are statutory passenger watchdogs effective in representing passenger interests in public transport?," Transport Policy, Elsevier, vol. 58(C), pages 1-9.
    7. Quiroz Flores, Alejandro & Pfaff, Katharina, 2021. "Private provision of public goods and political survival: Rail transport in four European democracies in the 20th century," Research in Transportation Economics, Elsevier, vol. 90(C).
    8. Zhang, Chunqin & Xiao, Guangnian & Liu, Yong & Yu, Feng, 2018. "The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 783-802.
    9. Chang, Zheng & Phang, Sock-Yong, 2017. "Urban rail transit PPPs: Lessons from East Asian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 106-122.
    10. Giacomo Di Foggia & Ugo Arrigo, 2015. "The scope of public organisations with productive functions: insights from the inefficiency of Italian local public transport," European Journal of Government and Economics, Europa Grande, vol. 4(2), pages 134-154, December.
    11. Emerson, David & Mulley, Corinne & Bliemer, Michiel C.J., 2016. "A theoretical analysis of business models for urban public transport systems, with comparative reference to a Community Franchise involving Individual Line Ownership," Research in Transportation Economics, Elsevier, vol. 59(C), pages 368-378.

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