The role of transaction cost on mixed delivery analysis: Evidence from the barcelona local bus system

• Autores: Germà Bel i Queralt, Jordi Rosell Foxà
• Localización: XXI Encuentro Economía Pública, 2014, pág. 32
• Idioma: inglés
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• Resumen

  • Recent evidence on public-private cost production of local public services has become ambiguous, while in-house production has been maintained even a privatization process has taken place. The objective of this paper is to compare the public and private provision in a mixed delivery scheme, analyzing the role of ownership, competition and transaction costs on local public services delivery in the same jurisdictional area. Using a stochastic cost frontier, we compare Barcelona public-private urban bus lines. We obtain that private provision is more expensive than public, tender process do not reduce costs and the inclusion of the totality of transaction costs favors public provision.

    The results support the existence of relational contracting on mature competitive environments.