Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection
Jaakko Meriläinen () and
Janne Tukiainen ()
No 113, Working Papers from VATT Institute for Economic Research
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 citizensâ€™ 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; Local public finance and provision of public services; C23; D72; H76; L13; L85 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fer:wpaper:113
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from VATT Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Anita Niskanen ().