Drivers of contracting back in local governments: analysing efficiency, opportunistic political cycles, political corruption and financial factors

Cristina María Campos-Alba, Emilio José De La Higuera Molina, Gemma Pérez-López and José Luis Zafra-Gómez

Journal of Economic Policy Reform, 2021, vol. 24, issue 3, 347-360

Abstract: The main aim of this paper is to examine the likelihood of local governments remunicipalising public services that were previously contracted out. To do so, we studied a sample of 141 Spanish municipalities with between 20,000 and 50,000 inhabitants, with particular reference to contracting back operations conducted in the period 2014–2016, using a random-effects panel logit model. We found that local authorities that contracted back public services were mainly influenced by the wish to achieve higher levels of efficiency, by political behaviour in a pre-electoral year, and by political corruption detected in the previous year.

Date: 2021
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DOI: 10.1080/17487870.2019.1689359

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