Contracting Out Public Service Provision to Not-for-Profit Firms

John Bennett () and Elisabetta Iossa

CEDI Discussion Paper Series from Centre for Economic Development and Institutions(CEDI), Brunel University

Abstract: In an incomplete contract setting, we analyze the contracting out of public service provision, comparing the performance of for-profit and notfor-profit firms (NPs). Two institutional arrangements are considered, with control rights lying either with the firm (’PPP’) or the government (’traditional procurement’). The use of an NP with traditional procurement is found never to be the preferred option in terms of social welfare. But for a range of parameter values an NP in a PPP is the preferred option. The development of PPP provision has thus created opportunities for the advantageous use of NPs in public services.

Pages: 31 pages
Date: 2007-04
New Economics Papers: this item is included in nep-pbe and nep-ppm
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Related works:
Journal Article: Contracting out public service provision to not-for-profit firms (2010)
Working Paper: Contracting Out Public Service Provision to Not-For-Profit Firms (2005)
Working Paper: Contracting Out Public Service Provision to Not-for-Profit Firms (2005)
Working Paper: Contracting Out Public Service Provision to Non-for-profit Firms (2004)
Working Paper: Contracting Out Public Service Provision to Non-for-profit Firms (2004)
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