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Privatization and Cooperative Management in the Provision of Public Services in the Rural United States

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  • John Halstead
  • Peter Girard

Abstract

Local governments in the U.S. are struggling with financial shortfalls due to economic downturns, loss of federal assistance, and resistance to raising more revenue through property taxes. This has led to increased interest in provision of municipal services by private contractors and cooperative arrangements in an effort to increase efficiency. Using results from previous studies in Illinois and Wisconsin we attempt to model the municipal decision of how to provide residents town services. In order to test the applicability of past work to smaller towns we conducted a survey of the mostly rural state of New Hampshire in the summer of 2004. This paper will provide descriptive statistics of this New Hampshire survey and comparisons to the results of past work. We also construct decision-making models using logit, probit, and Poisson techniques which examine the influence of population, location and other exogenous factors on the decision to privatize.

Suggested Citation

  • John Halstead & Peter Girard, 2005. "Privatization and Cooperative Management in the Provision of Public Services in the Rural United States," ERSA conference papers ersa05p30, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa05p30
    as

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    References listed on IDEAS

    as
    1. Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1997. "Privatization in the United States," RAND Journal of Economics, The RAND Corporation, vol. 28(3), pages 447-471, Autumn.
    2. Deller, Steven C. & Hinds, David G. & Hinman, Donald L., 2001. "Local Public Services in Wisconsin: Alternatives for Municipalities with a Focus on Privatization," Staff Paper Series 441, University of Wisconsin, Agricultural and Applied Economics.
    3. Ostrom, Vincent & Tiebout, Charles M. & Warren, Robert, 1961. "The Organization of Government in Metropolitan Areas: A Theoretical Inquiry," American Political Science Review, Cambridge University Press, vol. 55(4), pages 831-842, December.
    4. Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996. "A Theory of Privatisation," Economic Journal, Royal Economic Society, vol. 106(435), pages 309-319, March.
    5. Steven C. Deller, 1998. "Local Government Structure, Devolution, and Privatization," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 135-154.
    Full references (including those not matched with items on IDEAS)

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