Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection

Jaakko Meriläinen () and Janne Tukiainen

CESifo Economic Studies, 2019, vol. 65, issue 4, 446-463

Abstract: We document that switching from laissez-faire production to public procurement in residential waste collection in Finland reduces the number of firms active in the local market, but induces a statistically significant and large decrease in unit prices on average. While public procurement, thus, seems to be desirable from the citizens’ perspective, not all municipalities adopt public procurement. We provide descriptive evidence that municipal council composition is associated with the chosen regime. This suggests that local politics may be one obstacle for the efficient provision of local public goods.

Keywords: free markets; waste collection; public procurement (search for similar items in EconPapers)
JEL-codes: C23 D72 H76 L13 L85 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Working Paper: Public procurement versus laissez-faire: evidence from household waste collection (2019)
Working Paper: Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection (2018)
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