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Contracting Out in American Local Governments: The Politics of Good Times

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Abstract:

The literature points to fiscal stress as the main explanation of contracting out. This thesis is investigated by evaluating the determinants of contracting out in public school districts in Washington. The empirical analysis shows that fiscal stress is strongly associated with contracting out, but in a way that highly contrasts traditional expectation. Thus, the more affluent the school districts become, the more it contracts out, while increased fiscal pressure tends to reduce the level of contracting out. In effect, contracted out services have a buffer role in the public budgets, and private delivered services are adjusted relatively more both upwards and downwards than the development in the general fiscal situation. It is argued that in a public sector with influential public employees, contracting out is easier in good economic times because it is possible to increase the use of private suppliers without reducing the level of in-house employment in this situation. On the other hand, in fiscal tight situations it is politically easier to cut back private supply than in-house produced services.

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contract (105), servic (77), public (53), privat (53), fiscal (48), school (48), govern (41), state (41), polit (40), district (39), level (37), local (32), situat (26), may (25), deliv (24), washington (23), sector (22), econom (22), increas (22), impact (21), measur (19),
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Name: The Midwest Political Science Association
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http://www.indiana.edu/~mpsa/


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Pallesen, Thomas. "Contracting Out in American Local Governments: The Politics of Good Times" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois, Apr 07, 2005 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p86389_index.html>

APA Citation:

Pallesen, T. , 2005-04-07 "Contracting Out in American Local Governments: The Politics of Good Times" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois Online <.PDF>. 2009-05-25 from http://www.allacademic.com/meta/p86389_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The literature points to fiscal stress as the main explanation of contracting out. This thesis is investigated by evaluating the determinants of contracting out in public school districts in Washington. The empirical analysis shows that fiscal stress is strongly associated with contracting out, but in a way that highly contrasts traditional expectation. Thus, the more affluent the school districts become, the more it contracts out, while increased fiscal pressure tends to reduce the level of contracting out. In effect, contracted out services have a buffer role in the public budgets, and private delivered services are adjusted relatively more both upwards and downwards than the development in the general fiscal situation. It is argued that in a public sector with influential public employees, contracting out is easier in good economic times because it is possible to increase the use of private suppliers without reducing the level of in-house employment in this situation. On the other hand, in fiscal tight situations it is politically easier to cut back private supply than in-house produced services.

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Associated Document Available Political Research Online

Document Type: .PDF
Page count: 20
Word count: 5042
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Contracting Out in American Local Governments: the Politics of Good Times. Thomas Pallesen Department of Political Science University of Aarhus Universitetsparken DK-8000 Aarhus C Denmark Phone: +45 8942 1111 Telefax: +45 8613 9839 E-mail: pallesen@ps.au.dk Presented at the Midwest Political Science Association's 2005 conference in Chicago. Abstract The literature points to fiscal stress as the main explanation of contracting out. This thesis is investigated by evaluating the determinants of contracting out in public school districts in Washington. The empirical
Cambridge (Mass) & London: Harvard University Press. Spulber Nicolas (1997) Redefining the State. Privatization and Welfare Reform in Industrial and Transitional Economies. Cambridge: Cambridge University Press. Thomas Clive S. and Ronald J. Hrebrenar (1999) Interest Group in States in Gray Virginia Russell Hanson and Herbert Jacob (eds.) Politics in the American States. Washington DC: CQ Press. Vinning Aiden and Anthony Boardman (1992) Ownership vs. Competition: Efficiency in Public Enterprise. Public Choice 73:205-239. 19 Data sources State of Washington The


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