“… 1. Studies employing regression analysis typically estimate the marginal effects of single demand- or supply-side factors on the level or likelihood of government contracting-out, holding other factors constant. For example, Lu (2016) suggested that governments are more likely to contract-out when service demand is high, ceteris paribus, Ni and Bretschneider (2007) concluded that governments are less likely to contract-out when market competition is low, ceteris paribus, and Brudney et al (2005) noted governments under great financial stress are more inclined to contract-out, ceteris paribus. However, these studies could not explain how the combinations of these factors shape contracting-out decisions, namely, what if governments face high service demand, low market competition, and great financial stress?…”