Article
Privatization of Government Services: Pressure-Group Resistance and Service Transparency
Journal of Labor Research
Document Type
Article
Publication Date
4-1-2000
Disciplines
Abstract
Even when efficiency gains can be expected from contracting out municipal services, it surprisingly rarely occurs. Political pressure by interest groups, especially unions, is usually assumed responsible. We argue that the effectiveness of such pressure is actually a function of a service’s “transparency,” which determines voter’s knowledge of the quality and cost of the service as well as the tax burden. A model is presented of the interplay between union opposition to contracting and service transparency. Policies are offered to increase transparency and make contracting optimal for governments.
DOI
10.1007/s12122-000-1050-z
Citation Information
Werner Z. Hirsch and Evan W. Osborne. "Privatization of Government Services: Pressure-Group Resistance and Service Transparency" Journal of Labor Research Vol. 21 Iss. 2 (2000) p. 315 - 326 ISSN: 0195-3613 Available at: http://works.bepress.com/evan_osborne/33/