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| Author: | Wigger, B.U. |
| Title: | Public versus private production of government services |
| Journal: | Zeitschrift für Betriebswirtschaft
2004 : JAN, VOL. 74:1, p. 53-67 |
| Index terms: | private sector public sector government service quality |
| Language: | eng |
| Abstract: | This paper examines the conditions determining the efficiency of in-house provision (hereafter as: i-h-prvn.) vs. private production of government (here as: gov.) services when the contract btw. the gov. and the provider is incomplete as to the quality (as: qty.) issues of the service. It is assumed that there is a verifiable minimum qty. for the service provider to achieve. It is shown that privatization strictly dominates i-h-prvn. when qty. innovations (as: inns:) are unimportant. In contrast, when qty. inns. are important and cost reductions have large harmful effects on qty., a case can be made for i-h-prvn. |
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