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Local Democracy Ltd

Author

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  • Jacob Aars
  • Hans-Erik Ringkjøb

Abstract

A number of European countries have witnessed a proliferation of local government enterprises in recent years. Norwegian local councillors are seemingly particularly exposed to this ‘enterprise fever’. Our article explores local governments' approaches to the political control of such companies. We observe a reluctance to intervene directly in the affairs of an enterprise, but there is a last-resort preparedness to take more resolute action. Lastly, in contrast to what the prototypical agency model postulates, we find that those who attach strong aspirations of increased capacity to the establishment of companies appear to lack trust in the same companies' performance capability.

Suggested Citation

  • Jacob Aars & Hans-Erik Ringkjøb, 2011. "Local Democracy Ltd," Public Management Review, Taylor & Francis Journals, vol. 13(6), pages 825-844, September.
    • Handle: RePEc:taf:pubmgr:v:13:y:2011:i:6:p:825-844
    DOI: 10.1080/14719037.2010.539110
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    Cited by:

    1. Andreas Bergh & Gissur Ó Erlingsson & Emanuel Wittberg, 2022. "What happens when municipalities run corporations? Empirical evidence from 290 Swedish municipalities," Local Government Studies, Taylor & Francis Journals, vol. 48(4), pages 704-727, July.
    2. Rhys Andrews, 2022. "Organizational Publicness and Mortality: Explaining the Dissolution of Local Authority Companies," Public Management Review, Taylor & Francis Journals, vol. 24(3), pages 350-371, March.
    3. Di Giulio, Marco & Galanti, Maria Tullia & Moro, Francesco Niccolò, 2016. "Political coalitions, local leaders and the internationalization of local public services in Italy," Utilities Policy, Elsevier, vol. 40(C), pages 144-151.
    4. Bart Voorn & Marieke van Genugten & Sandra Van Thiel, 2020. "Performance of municipally owned corporations: Determinants and mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 191-212, June.
    5. Khandakar Farid Uddin, 2017. "Political Hostility and Local Government Crisis in Bangladesh: Ruling Party’s Supremacy and Opposition Party’s Costs of Being Outside of the State Power," South Asian Survey, , vol. 24(2), pages 117-134, September.
    6. Laszlo Vasa & Szilard Hegedus & Csaba Lentner, 2021. "Debt Dynamics Among European Municipalities and Their Organizations: Comparative Analysis with Focus on Hungary," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 622-645.

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