uu.seUppsala University Publications
Change search
ReferencesLink to record
Permanent link

Direct link
Contracting out in Sweden: ownership and production costs
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.ORCID iD: 0000-0001-8826-0410
2008 (English)In: The Waste Market: Institutional Developments in Europe, Springer , 2008, 43-65 p.Chapter in book (Other academic)
Abstract [en]

Many comparisons of public and private firms use a public/private ownership dummy variable to capture cost differences. If, however, public and private firms use different production technologies, the dummy-variable approach is misspecified. Data from public and private firms should not be pooled. Secondly, selectivity bias may arise, making it more difficult to identify cost differentials that actually exist. Thirdly, if data should be pooled, the resulting empirical model may be logically inconsistent. This paper compares public and private firms using the refuse collection costs of 170 firms in 115 Swedish municipalities. First, public production costs were 6 per cent lower than private production costs. Secondly, cost differences did not affect producer choice. It is crucial to adjust for selectivity. Data for private and public firms should not be pooled. The dummy-variable model is misspecified.

Place, publisher, year, edition, pages
Springer , 2008. 43-65 p.
Keyword [en]
contracting out, ownership, collection, Sweden, privatization
National Category
Research subject
URN: urn:nbn:se:uu:diva-86573DOI: 10.1007/978-1-4020-8711-0ISBN: 978-1-4020-8710-3ISBN: 978-1-4020-8711-0OAI: oai:DiVA.org:uu-86573DiVA: diva2:126442
Available from: 2008-11-17 Created: 2008-11-17 Last updated: 2013-07-09

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Ohlsson, Henry
By organisation
Department of Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 210 hits
ReferencesLink to record
Permanent link

Direct link