Contracting Out Local Public Services

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Authors

NEMEC Juraj MIKUŠOVÁ MERIČKOVÁ Beáta VOZÁROVÁ Zuzana

Year of publication 2014
Type Article in Proceedings
Conference Proceedings of the 19th International Conference: Theoretical and Practical Aspects of Public Finance 2014
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Management and administrative
Keywords contracting; local public services; efficiency; Slovakia
Description The theory of contracting suggests that, provided certain conditions are met, contractin out has the potential to improve efficiency without cacrificing quality, compared to direct supply by public organizations. Detailed analysis of the Slovak situation suggests that externalization of production generally delivers neither improved efficiency nor better quality compared with internalized production. In a few specific situations, however, the data reveal that contracting can be effective when properly implemented. The paper uses method of best values of indicators to measure efficiency and discusses the limitations of municipal data based on cash accounting.
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