Contracting out by the public sector: theory, evidence, prospects

Domberger, Simon; Jensen, Paul H.

doi:10.1093/oxrep/13.4.67

Cited by 392 publications

(272 citation statements)

References 13 publications

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“…Figure 3 illustrates the difference in average operating cost for projects without (thin line) and with competitive tendering (thick line). Our result fits very well with the survey evidence reported in Domberger and Jensen (1997).…”

Section: Resultssupporting

confidence: 93%

Operating costs in Norwegian toll companies: a panel data analysis

et al. 2007

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The objective of this paper is to ease the planning of new toll projects by providing estimates of operating costs, and to help us make better informed decisions about the design of the toll collection system. To do so we use panel data for Norwegian toll companies to estimate average cost functions.The main results can be summarised as follows. We provide evidence of very important unexploited economies of scale. The estimates cost curves are very steep for traffic levels below the sample mean, and becomes almost entirely flat over a wide range above the sample mean. A higher share of vehicles using on board units will significantly reduce average costs. Competitive tendering will significantly reduce average operating costs by as much as 25 %. Our results also suggest that increased number of lanes, higher debt and passenger charging will increase average operating costs whereas average operating costs are lower for toll cordons compared with other projects.

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Section: Resultssupporting

confidence: 93%

Operating costs in Norwegian toll companies: a panel data analysis

et al. 2007

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“…Early academic analyses of the effect of privatization on costs usually found a positive relation between privatization and cost savings. Similar results were stressed in reviews such as Domberger and Rimmer (1994) and Domberger and Jensen (1997).…”

Section: Introductionsupporting

confidence: 84%

Factors explaining local privatization: a meta-regression analysis

2008

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Privatization of local public services has been implemented worldwide in the last decades. Why local governments privatize has been the subject of much discussion, and many empirical works have been devoted to analyzing the factors that explain local privatization.Such works have found a great diversity of motivations, and the variation among reported empirical results is large. To investigate this diversity we undertake a meta-regression analysis of the factors explaining the decision to privatize local services. Overall, our results indicate that significant relationships are very dependent upon the characteristics of the studies. Indeed, fiscal stress and political considerations have been found to contribute to local privatization specially in the studies of US cases published in the eighties that consider a broad range of services.Studies that focus on one service capture more accurately the influence of scale economies on privatization. Finally, governments of small towns are more affected by fiscal stress, political considerations and economic efficiency, while ideology seems to play a major role for large cities.

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“…However, there is disagreement on the magnitude, sources and sustainability of such savings, and studies on their impact on quality are inconclusive (Domberger and Jensen 1997, Jensen and Stonecash 2005, Milne and Wright 2004.…”

Section: Introductionmentioning

confidence: 99%

Outsourcing day surgery to private for-profit hospitals: the price effects of competitive tendering

Hagen

Holom

Amayu

2017

HEPL

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Abstract:Setting prices for elective patient treatments in private for-profit (PFP) hospitals in traditional tax-funded health systems is challenging since both the organisation of these hospitals and the tasks they perform differ considerably from what we find in public hospitals. From the year 2000, Norway became one of a few countries to gradually implement a procurement system based on competitive tendering when outsourcing elective surgery. In this study we analyse the effect of introducing competitive tendering on the prices paid to PFP hospitals. Pricing data were collected from the formal contracts awarded to PFP hospitals and defined in terms of both absolute and relative prices. We found that PFP hospitals performed day surgeries at markedly lower prices than public hospitals and that competitive tendering triggered the price reduction. We speculate that the PFP hospitals' lack of acute services, less severe patient population, reduced teaching responsibilities and ability to streamline production, as well as other factors, explain the lower prices at PFP hospitals. Cambridge University Press AbstractSetting prices for elective patient treatments in private for-profit (PFP) hospitals in traditional tax-funded health systems is challenging since both the organisation of these hospitals and the tasks they perform differ considerably from what we find in public hospitals. From the year 2000, Norway became one of a few countries to gradually implement a procurement system based on competitive tendering when outsourcing elective surgery. In this study we analyse the effect of introducing competitive tendering on the prices paid to PFP hospitals. Pricing data were collected from the formal contracts awarded to PFP hospitals and defined in terms of both absolute and relative prices. We found that PFP hospitals performed day surgeries at markedly lower prices than public hospitals and that competitive tendering triggered the price reduction. We speculate that the PFP hospitals' lack of acute services, less severe patient population, reduced teaching responsibilities and ability to streamline production, as well as other factors, explain the lower prices at PFP hospitals.

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Contracting out by the public sector: theory, evidence, prospects

Cited by 392 publications

References 13 publications

Operating costs in Norwegian toll companies: a panel data analysis

Operating costs in Norwegian toll companies: a panel data analysis

Factors explaining local privatization: a meta-regression analysis

Outsourcing day surgery to private for-profit hospitals: the price effects of competitive tendering

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