IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/59794.html
   My bibliography  Save this paper

Local mixed companies: the theory and practice in an international perspective

Author

Listed:
  • da Cruz, Nuno F.
  • Marques, Rui Cunha
  • Marra, A.
  • Pozzi, C.

Abstract

Several factors have been contributing to the growing use of public private-partnership (PPP) arrangements by local governments, such as, the need for new investments on infrastructure (e.g. decentralization of responsibilities, regulatory requirements demanding better quality and environmental protection, renovation of the networks), imposition of strict debt limits to the localities, and local government reform policies/programs. Whereas contractual PPP arrangements, such as concession contracts, can be seen as an extension of traditional public procurement (with additional complexities in contract design and management) and are currently better handled by contracting authorities, institutionalized PPPs (mixed companies) are still quite puzzling for both practitioners and academics. In fact, the following questions deserve further investigation: When are mixed companies expected to depict a higher performance than other options? What are the risks involved and how should they be allocated and mitigated? How should mixed companies be monitored and evaluated? The articles in this Special Issue provide insightful answers to these and many other relevant questions to policy makers.

Suggested Citation

  • da Cruz, Nuno F. & Marques, Rui Cunha & Marra, A. & Pozzi, C., 2014. "Local mixed companies: the theory and practice in an international perspective," LSE Research Online Documents on Economics 59794, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:59794
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/59794/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. da Cruz, Nuno F. & Marques, Rui Cunha, 2012. "Mixed companies and local governance: no man can serve two masters," LSE Research Online Documents on Economics 59778, London School of Economics and Political Science, LSE Library.
    2. Bos, Dieter, 1991. "Privatization: A Theoretical Treatment," OUP Catalogue, Oxford University Press, number 9780198283690, Decembrie.
    3. Claude Ménard & Stéphane Saussier, 2000. "Contractual Choice and Performance the Case of Water Supply in France," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 385-404.
    4. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    5. da Cruz, Nuno F. & Marques, Rui Cunha, 2013. "Mixed companies as local utilities," LSE Research Online Documents on Economics 59761, London School of Economics and Political Science, LSE Library.
    6. Brousseau,Eric & Glachant,Jean-Michel (ed.), 2002. "The Economics of Contracts," Cambridge Books, Cambridge University Press, number 9780521814904, January.
    7. Oliver Hart, 2003. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 69-76, March.
    8. Eckel, Catherine C & Vining, Aidan R, 1985. "Elements of a Theory of Mixed Enterprise," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 82-94, February.
    9. Aidan R. VINING & Anthony E. BOARDMAN & Mark A. MOORE, 2014. "The Theory And Evidence Pertaining To Local Government Mixed Enterprises," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 53-86, March.
    10. Marian MOSZORO, 2014. "Efficient Public-Private Capital Structures," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 103-126, March.
    11. Alessandro MARRA, 2007. "Internal Regulation By Mixed Enterprises: The Case Of The Italian Water Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(2), pages 245-275, June.
    12. B. Guy PETERS & Jon PIERRE & Asbjørn RØISELAND, 2014. "Financial Gains And Value Loss? The Impacts Of Local Mixed Companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 87-102, March.
    13. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications - Books, The World Bank Group, number 15024.
    14. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    15. Schmidt, Klaus M, 1996. "The Costs and Benefits of Privatization: An Incomplete Contracts Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 1-24, April.
    16. Brousseau,Eric & Glachant,Jean-Michel (ed.), 2002. "The Economics of Contracts," Cambridge Books, Cambridge University Press, number 9780521893138, January.
    17. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
    18. A. Marra & V. Carlei, 2014. "Institutional Environment And Partial Privatizations: Policy Implications For Local Governments," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 31-52, March.
    19. repec:mpr:mprres:3109 is not listed on IDEAS
    20. Daniel Albalate & Germà Bel & Joan Calzada, 2012. "Governance and regulation of urban bus transportation: Using partial privatization to achieve the better of two worlds," Regulation & Governance, John Wiley & Sons, vol. 6(1), pages 83-100, March.
    21. Patrick W. Schmitz, 2001. "Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 394-411, August.
    22. A. Asquer, 2014. "Explaining Partial Privatization Of Public Service Provision: The Emergence Of Mixed Ownership Water Firms In Italy (1994–2009)," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 11-30, March.
    23. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, December.
    24. Douglas SWARTS & Mildred E. WARNER, 2014. "Hybrid Firms And Transit Delivery: The Case Of Berlin," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 127-146, March.
    25. Huanming WANG & Mildred E. WARNER & Yuanhong TIAN & Dajian ZHU, 2014. "Public Owner With Business Delivery Mode In China: Case Study Of The Shanghai Public Bus System," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 147-164, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paolo Esposito & Spiridione Lucio Dicorato, 2020. "Sustainable Development, Governance and Performance Measurement in Public Private Partnerships (PPPs): A Methodological Proposal," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    2. Antonio Massarutto & Andrea Garlatti & Stefano Miani & Ernesto Cassetta & Silvia Iacuzzi, 2021. "Evaluating the performance of local SoEs as output‐maximizing entities: The case of Friuli Venezia Giulia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 307-332, June.
    3. Julie de Brux & Frédéric Marty, 2014. "IPPP – Risks and opportunities An economic perspective," Working Papers hal-03470399, HAL.
    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. Thomas KOSTAL & Verena MICHALITSCH & Gabriel OBERMANN, 2014. "Local Public Transport in Vienna by Wiener Linien - Governance and Provision of Services," CIRIEC Working Papers 1417, CIRIEC - Université de Liège.
    6. repec:spo:wpmain:info:hdl:2441/3n1h5ijlcf80v9csi63s61fdvk is not listed on IDEAS
    7. Sanford V. Berg & Makoto Okamura & Haruka Yane & Shinji Yane, 2022. "Efficient performance by companies with mixed ownership: Privatization and divestiture of a vertically integrated public monopoly," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(3), pages 717-730, September.
    8. Dementiev, Andrei, 2016. "Strategic partnerships in local public transport," Research in Transportation Economics, Elsevier, vol. 59(C), pages 65-74.
    9. repec:hal:spmain:info:hdl:2441/3n1h5ijlcf80v9csi63s61fdvk is not listed on IDEAS
    10. Germà Bel & Jordi Rosell, 2016. "Public and Private Production in a Mixed Delivery System: Regulation, Competition and Costs," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(3), pages 533-558, June.
    11. Carole RENTSCH & Matthias FINGER, 2015. "Yes, No, Maybe: The Ambiguous Relationships Between State-Owned Enterprises And The State," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(4), pages 617-640, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Marra, 2006. "Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities," Bruges European Economic Research Papers 4, European Economic Studies Department, College of Europe.
    2. Julie de Brux & Frédéric Marty, 2014. "IPPP - Risks and opportunities An economic perspective," Post-Print halshs-00990951, HAL.
    3. Alessandro MARRA, 2007. "Internal Regulation By Mixed Enterprises: The Case Of The Italian Water Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(2), pages 245-275, June.
    4. repec:spo:wpmain:info:hdl:2441/3n1h5ijlcf80v9csi63s61fdvk is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/3n1h5ijlcf80v9csi63s61fdvk is not listed on IDEAS
    6. Alberto Cavaliere & Simona Scabrosetti, 2008. "Privatization And Efficiency: From Principals And Agents To Political Economy," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 685-710, September.
    7. Kanazawa, Mark, 2006. "Investment in private water development: Property rights and contractual opportunism during the California Gold Rush," Explorations in Economic History, Elsevier, vol. 43(2), pages 357-381, April.
    8. Boggio, Margherita, 2011. "From Reluctant Privatization to Municipal Capitalism: an Overview on Ownership, Political Connections and Decentralization," MPRA Paper 46232, University Library of Munich, Germany.
    9. Zhang, Yinfang & Parker, David & Kirkpatrick, Colin, 2005. "Competition, regulation and privatisation of electricity generation in developing countries: does the sequencing of the reforms matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 358-379, May.
    10. Stefan Buehler & Simon Wey, 2014. "When Do State-Owned Firms Crowd Out Private Investment?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 319-330, September.
    11. Hoppe, Eva I. & Schmitz, Patrick W., 2010. "Public versus private ownership: Quantity contracts and the allocation of investment tasks," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 258-268, April.
    12. Aidan R. Vining & David L. Weimer, 2016. "The challenges of fractionalized property rights in public‐private hybrid organizations: The good, the bad, and the ugly," Regulation & Governance, John Wiley & Sons, vol. 10(2), pages 161-178, June.
    13. Athias, Laure & Saussier, Stéphane, 2007. "Contractual flexibility or rigidity for public private partnerships? Theory and evidence from infrastructure concession contracts," MPRA Paper 10541, University Library of Munich, Germany.
    14. Claude Ménard, 2013. "Is Public-Private Partnership Obsolete? Assessing the Obstacles and Shortcomings of PPP," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00653090, HAL.
    15. Peeter Peda & Giuseppe Grossi & Margo Liik, 2013. "Do ownership and size affect the performance of water utilities? Evidence from Estonian municipalities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 237-259, May.
    16. Lulfesmann, Christoph, 2007. "On the virtues of privatization when government is benevolent," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 17-34, September.
    17. Fabio Monteduro, 2014. "Public–private versus public ownership and economic performance: evidence from Italian local utilities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 29-49, February.
    18. Ruiz-Villaverde, Alberto & González-Gómez, Francisco & J. Picazo- Tadeo, Andrés, 2015. "The privatisation of urban water services: theory and empirical evidence in the case of Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 31, pages 157-174.
    19. Nobuaki Hamaguchi, 2002. "Will The Market Keep Brazil Lit Up? Ownership And Market Structural Changes In The Electric Power Sector," The Developing Economies, Institute of Developing Economies, vol. 40(4), pages 522-552, December.
    20. Druk-Gal, Bat-Sheva & Yaari, Varda, 2006. "Incumbent employees' resistance to implementing privatization policy," Journal of Economic Behavior & Organization, Elsevier, vol. 59(3), pages 374-405, March.
    21. Jamasb, Tooraj & Pollitt, Michael, 2007. "Incentive regulation of electricity distribution networks: Lessons of experience from Britain," Energy Policy, Elsevier, vol. 35(12), pages 6163-6187, December.
    22. Nandini Gupta, 2001. "Partial Privatization and Firm Performance: Evidence from India," Industrial Organization 0112002, University Library of Munich, Germany.

    More about this item

    Keywords

    institutionalized public-private partnerships; local government; partial privatization;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:59794. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.