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Re-municipalization in the US: a pragmatic response to contracting

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  • Mildred E. Warner
  • Austin M. Aldag

Abstract

We conduct a national survey of US local governments and find service outcomes – quality, cost savings and efficiency – are the primary drivers of re-municipalization, not political pressures. Logistic regression of 2,187 governments finds larger, urban and suburban, professionally managed local governments with more service capacity are more likely to report re-municipalization. Fiscal stress perception, local debt, and unionization rates have no effect. Re-municipalization is more likely in governments that also study privatization and conduct activities to ensure successful contracting. Thus, re-municipalization in the US is a pragmatic process of contract management, not primarily driven by political interests.

Suggested Citation

  • Mildred E. Warner & Austin M. Aldag, 2021. "Re-municipalization in the US: a pragmatic response to contracting," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 24(3), pages 319-332, July.
    • Handle: RePEc:taf:jpolrf:v:24:y:2021:i:3:p:319-332
    DOI: 10.1080/17487870.2019.1646133
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    Cited by:

    1. Juri Demuth & Hans W. Friederiszick & Steffen Reinhold, 2022. "Reverse Privatization as a Reaction to the Competitive Environment: Evidence from Solid Waste Collection in Germany," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(2), pages 217-261, March.
    2. Daniel Albalate & Germà Bel & Francisco González-Gómez & José C. Hernández-Gutiérrez & Andrés J. Picazo-Tadeo, 2023. "Remunicipalization of Local Public Services: Policy Drivers and Changing Prices," IREA Working Papers 202319, University of Barcelona, Research Institute of Applied Economics, revised Dec 2023.
    3. Daniel Albalate & Germà Bel & Francisco González-Gómez & José C. Hernández-Gutiérrez & Andrés J. Picazo-Tadeo, 2024. "Changing prices after the reform of local public services: remunicipalization versus privatization," Journal of Regulatory Economics, Springer, vol. 65(1), pages 1-26, June.

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