Internal factors of intermunicipal cooperation: what matters most and why?

ABSTRACT

This paper focuses on the internal aspects of intermunicipal cooperation, providing a new and innovative approach to the cost effectiveness of municipal waste management. We examine a sample of 658 municipalities in the Czech Republic’s South Moravian Region and 205 cooperating municipalities separately during 2012–2014. The results, based on ordinary least-squares regression, show that cost reduction is significantly influenced by the institutional arrangement of intermunicipal cooperation, the participation of municipal representatives in management, and professional managers. The paper shows that a crucial role in cost reduction is played by internal factors that have been investigated only marginally so far. Cost increases are related to municipality sizes larger than 10,000 inhabitants and to profit-oriented behaviours of waste collection companies. The results differ in the size samples of municipalities; only the impact of institutional arrangement is significant in all groups of municipalities.     

Does Ownership Matter for the Delivery of Professionalized Public Services? Cost‐efficiency and Effectiveness in Private and Public Dental Care for Children in Denmark

Recent decades have witnessed considerable interest in the cost‐efficiency and effectiveness of public services. Private provision is often claimed to be more cost‐efficient than public provision, but these efficiency gains are accused of being at the expense of effectiveness. Most of the evidence comes from relatively simple, technical services, because effectiveness is often difficult to define and measure for services produced by professionals. In addition, type of ownership might very well affect services produced by professionals differently as a result of professional standards and other regulation. The case in question, child dental care in Denmark, is a professionalized service which is remarkable for its clear and quantifiable measure of effectiveness. The findings show that neither cost‐efficiency nor effectiveness of public and private producers differs. The data represent cost and outcome measures controlled for structural variables for the 275 Danish municipalities between 1996 and 2002.     

NPM Reforms in Napoleonic Countries: A Comparative Study of Management Accounting Innovations in Greek and Italian Municipalities

This is a comparative study of the rationale and effects of management accounting innovations in Greek and Italian municipalities, as part of the NPM reform in the public sector. This article aims to understand the extent of adoption of accounting innovations in Greek and Italian municipalities, and the factors affecting the specific techniques in use. The study reports on a survey based on medium-sized and large Italian and Greek municipalities, targeted at public municipalities’ accountants, the users of accounting techniques. The study identifies the intended purposes of NPM reform and, particularly, management accounting innovations, analyzes a set of factors that affect the implementation of management accounting technologies, and discusses determinants and features of such innovation on a comparative perspective.     

THE PUBLIC MANAGEMENT CHALLENGES OF CONTRACTING WITH NONPROFITS for SOCIAL SERVICES

ABSTRACT

States and municipalities increasingly pursue privatization as a way to deliver public goods and services because of two expected outcomes, reduced costs and quality improvements. Several reasons are frequently cited for these anticipated benefits ranging from market competition to increased management flexibility and discretion to fewer rules and regulations. One policy area in which government has privatized many services through contracting with nonprofit organizations is social services. Contracted services are as diverse as providing shelters for the homeless, vocational education and job retraining, domestic violence services, refugee esettlement, child and elder abuse services, and food banks. A proliferation of public administration and nonprofit organizational scholarship has examined a range of issues associated with the government-nonprofit social service contracting relationship, not the least of which are topics related to management, measurement, and accountability. This article examines the public management challenges and implications of contracting with nonprofit organizations for the delivery of social services.     

Do citizens hold mayors accountable for local conditions? Evidence from Italian municipalities

Using data on 75 big Italian municipalities between 2010 and 2015, this paper looks at the extent to which citizens’ evaluations of mayors are responsive to changes in local performance indicators. While local economic and crime measures are found not be associated with mayoral approval ratings, there is a correlation between mayors’ popularity and indicators for local public transportation and air quality. Mayors of municipalities where more individuals use public transport and where there is less polluted air enjoy higher approval ratings. Additional analysis shows that this result is driven by very big municipalities (with a population over 500,000) that are more likely to be exposed to high levels of traffic congestion and pollution.     

Does Public Spending Improve Citizens’ Quality of Life? An Analysis of Municipalities’ Leisure Supply

This paper offers new evidence regarding the impact of public spending on the supply of leisure services on citizens’ spare-time quality of life. Using data from 103 Italian capital municipalities covering the period 2007–2010, the analysis revealed that public spending on leisure impacted spare-time quality of life in various ways, depending on the category of spending. Spending for tourism essentially followed an upward path, linearly enhancing citizens’ spare-time quality of life. Surprisingly, municipalities’ spending on sport- and culture-related services had a non-linear impact. Hence, spending on sports within a maximum threshold reveals a positive impact on spare-time quality of life, whereas passing over a minimum level of public spending for culture-related projects had a positive effect. This paper provides helpful suggestions for policymakers who approach decisions that address whether it is worth spending on leisure, which is typically a non-basic need but one that must be properly satisfied by municipalities in today’s service-based society.     

Implementation of CRM systems in Portuguese Municipalities

Customer relationship management is a business strategy which dynamically integrates a set of services with the purpose of creating value for the organisation and for their customers. In Portugal, the 2009/2010 edition of ‘Simplex for Municipalities’, the action plan carried by the Portuguese government through the Secretary's Office of State for Administrative Modernisation, makes a commitment to promote a set of initiatives in order to help citizens using the public services. This process intends to reduce costs of context which burden the economic activities, making way for the modernisation of administration. Customer relationship management assumes a central role in this context. This paper presents the main results of a survey that was carried out with Portuguese municipalities, aiming a general characterisation of the adoption of customer relationship management systems, covering several aspects, from the motivations for CRM adoption to the obtained results. The improvement of the relationship with citizens and a higher information quality are some of the most important results obtained by municipalities.     

Evaluating local government performance in times of crisis

In recent years, Spanish local governments have come under increasing pressure to accommodate severe economic restrictions while maintaining their provision of local public services. We analyse overall cost efficiency in Spanish local governments during the period of the economic crisis (2008–2013), under four different non-parametric methodologies. Moreover, given how problematic it is to precisely define what municipalities do, we compare three different output models with various measures of quantity as well as quality. Results suggest that Spanish local government efficiency improved over the period 2008–2013 since budget expenditures (inputs) fell while local public services and facilities (outputs) were maintained. We also find evidence of the possible implications of service quality when measuring municipalities’ efficiency, and of structural differences in the average efficiency between municipalities located in different Spanish regions. Finally, our results confirm that the level and variation of efficiency scores are affected by the approach taken.     

Contracting out local road and park services: economic effects and their strategic,contractual and competitive conditions

ABSTRACT

The economic rationale for contracting out local services is increasingly contested by empirical research. This article aims to contribute to this literature, first by scrutinising the economic effects of contracting out in local road and park services and, second, by exploring how characteristics such as markets, contracts, municipal strategies and contracting history influence these outcomes. Drawing on original survey data from Danish municipalities, we find that competitive tendering has on average reduced costs. Further analysis shows that savings are not associated with lower quality, thus indicating that ‘quality shading’ was not taking place. Another finding is that municipalities that repeatedly contract the services experience smaller savings, suggesting that competitive tendering is subject to declining marginal returns. Finally, we find that larger municipalities and those emphasising expenditure cuts realise larger savings, whereas the characteristics of markets and contracts do not seem to explain variations in cost savings.     

Economies of scale in Danish municipalities: Expenditure effects versus quality effects

A change in the cost structure in the Danish municipalities seems to have occurred bringing in a larger fixed element in the cost function and making unit costs higher in small municipalities than in large. The paper examines the hypothesis that small municipalities in their reaction to their higher unit costs for management make a trade-off between raising expenditures and the tax level, on the one hand, and reducing the quality of the production, on the other. Using accounting data for 1980, 1990 and 2000 it is shown that the expenditure structure has shifted since 1980 so that small municipalities now exhibit higher unit expenditures than larger municipalities. However, there also seems to be a quality substituting effect in the small municipalities as a reaction to the higher unit costs. From data based on a questionnaire to the chief executives in all municipalities indications of weak political and administrative leadership in the small municipalities are demonstrated. We find that population size and administrative capacity explain significant differences in municipal understanding of the consequences of the central government regulation defining the conditions for the local production of services.     

Measuring Quality of Life in Spanish Municipalities

Abstract

Measuring quality of life in municipalities entails two empirical challenges. First, collecting a set of relevant indicators that can be compared across the municipalities in the sample. Secondly, using an appropriate aggregating tool in order to construct a synthetic index. This paper measures quality of life for the largest 237 Spanish municipalities using Value Efficiency Analysis (VEA) to derive comparative scores by combining the information contained in 19 partial indicators. VEA is a refinement of DEA (Data Envelopment Analysis) that imposes some consistency in the weights of the indicators used to construct the aggregate index. The indicators cover aspects related to consumption, social services, housing, transport, environment, labour market, health, culture and leisure, education and security. The results show that the Northern and Central regions in Spain attain the highest levels of quality of life, while the Southern regions report low living conditions. Education is the variable that requires the largest improvement in low performing municipalities, followed by health and culture facilities, pollution and crime. Population density, growth and ageing seem to relate positively to quality of life.     

Public Nursery School Costs and the Effects of the Funding Reforms in Japan

Using a panel dataset of 983 municipalities across Japan, this article investigates the impact of the funding reforms in 2004 on public nursery schools’ operating costs. We found that municipalities responded differently to the reforms, depending on their fiscal strength and city scale. In areas with relatively large populations, fiscally stronger municipalities were likely to spend less on public nursery schools in the wake of the reforms, while municipalities in smaller cities spent more. Besides, municipalities that were not compensated for the loss of the national subsidy reduced expenditures in large cities. In small cities, on the other hand, such municipalities actually increased expenditures.     

Privatization in developing countries: ideal and reality

In both developed and developing countries, governments finance, produce, and distribute various goods and services. In recent years, the range of goods provided by government has extended widely, covering many goods which do not meet the purist's definition of “public” goods. As the size of the public sector has increased steadily there has been a growing concern about the effectiveness of the public sector's performance as producer. Critics of this rapid growth argue that the public provision of certain goods is inefficient and have proposed that the private sector replace many current public sector activities, that is, that services be privatized. Since Ronald Reagan took office greater privatization efforts have been pursued in the United States. Paralleling this trend has been a strong endorsement by international and bilateral donor agencies for heavier reliance on the private sector in developing countries.

However, the political, institutional, and economic environments of developing nations are markedly different from those of developed countries. It is not clear that the theories and empirical evidence purported to justify privatization in developed countries are applicable to developing countries.

In this paper we present a study of privatization using the case of Honduras. We examine the policy shift from “direct administration” to “contracting out” for three construction activities: urban upgrading for housing projects, rural primary schools, and rural roads. The purpose of our study is threefold. First, we test key hypotheses pertaining to the effectiveness of privatization, focusing on three aspects: cost, time, and quality. Second, we identify major factors which affect the performance of this privatization approach. Third, we document the impact of privatization as it influences the political and institutional settings of Honduras. Our main finding is that contracting out in Honduras has not led to the common expectations of its proponents because of institutional barriers and limited competitiveness in the market. These findings suggest that privatization can not produce goods and services efficiently without substantial reform in the market and regulatory procedures. Policy makers also need to consider carefully multiple objectives at the national level in making decisions about privatization.     

Municipal population size and the benefits of inter-municipal cooperation: panel data evidence from Japan

ABSTRACT

Intermunicipal cooperation (IMC) facilitates efficient public service delivery. This study measures how the benefits municipalities gain through IMC differ according to municipal population size and service provision type. Focusing on public health and fire protection services, this study employs panel data regression for 1,706 Japanese municipalities over a five-year period, 2012–2017. This study has several major findings. First, an increase in the IMC spending ratio reduces public spending in both the studied services. Second, the marginal effect of IMC varies depending on the size of the municipal population. More specifically, the marginal effect of IMC on public health has a narrow confidence interval with a wide ranging population scale, while the marginal effect of IMC on fire protection produces negative values for only 151 municipalities due to extensive standard error. These findings can help municipalities take advantage of IMC to improve public service delivery.     

LOCAL ADMINISTRATION OF SOCIAL ASSISTANCE PROGRAMS IN RUSSIA

Competent administration is fundamental to successful reform of social assistance programs in transition economies. Only with such administration is there assurance that benefits are being delivered as intended in enabling legislation. Moreover, the perceived efficiency and fairness of administration influences the public's views of the new programs. In the Russian Federation local governments have primary responsibility for the administration of social assistance programs enacted by all levels of government.

This paper presents the results of surveying nine offices charged with administering social assistance programs in four Russian municipalities. The accent is on the basics of program administration and management. Topics studied include client flow, eligibility verification procedures, the presence of a procedures manual for in-take workers, quality control procedures, and training. The findings are sobering and emphasize the need for the Russian government to assist municipalities to strengthen their administrative capacity through a combination of exhortation and leadership, provision of written guidance materials—on good administrative practices and program-specific regulations and procedures—and a national program of seminars for supervisors of various programs.     

WHY DO LOCAL GOVERNMENTS PRIVATIZE THE PROVISION OF WATER SERVICES? EMPIRICAL EVIDENCE FROM SPAIN

Why do some local governments privatize water services, while others opt for public management? Economic literature has been unable to demonstrate that private management is more efficient than public management, so there must be other reasons that lead governments to privatize the service. But what are they? This paper presents the results of a study that analyses the factors behind the privatization of water services with data from 741 municipalities located in the South of Spain over a period dating from 1985 to 2006. A discrete choice model analyses the influence of each factor on the likelihood of privatization. One of the novelties of this paper is that we take the value of the explanatory variables at the time when water services are privatized. Among our findings, it is worth highlighting the importance of the size of municipalities, their financial burden and the neighbouring effect.     

ONLINE SERVICE PROVISION: ARE MUNICIPALITIES REALLY INNOVATIVE? THE CASE OF LARGER MUNICIPALITIES IN ITALY

The employment of information and communication technologies for the delivery of information and services has been considered a major objective of the modernization agenda of municipalities. This article contributes to the advances in the e‐government literature by assessing the current status of ICT adoption among larger Italian municipalities and investigating whether the municipalities at a more mature stage of e‐government adoption share any distinctive characteristics. The results show that some organizational factors, rather than environmental ones, show a positive association. However, the analysis also shows that most of the Italian municipalities involved have undertaken a non‐linear e‐government adoption process, which currently results in low diffusion of more mature stages of ICT adoption for the delivery of services to citizens and businesses.     

Organisational choices in public procurement: what can public management learn from the private sector?

ABSTRACT

In the public context, the efficient and effective management of procurement activities has a crucial impact on the achievement of operational and broader government objectives. In particular, the potential contribution of procurement within local governments has been broadly recognized, and organisational procurement choices represent a strategic aspect that must be managed to contribute to these objectives. Through the analysis of data on 371 Italian municipalities, this paper discusses how to design procurement organisation variables for local governments. Three possible organisational models are identified (i.e., authoritative procurement, silo procurement, and local procurement) and discussed from the perspective of internal and external contingencies that may affect organisational decisions.     

The use of intergovernmental grants to municipalities for electoral purposes by subnational governments

Subnational governments devote a significant share of their financial resources to help municipalities provide local public services to their citizens. Compared to the large number of studies on national governments, little effort has been devoted to the influence of distributive politics on the use of intergovernmental grants by subnational governments. To fill this gap, this study uses a data set covering the period 2001–2011 to verify to what extent the Québec government used conditional grants to municipalities for electoral purposes. The results of this study show that the allocation of grants to municipalities is not exempt from electoral politics as municipalities located in districts held by governing parties or in high electoral competition districts receive more grants than other municipalities. However, the influence of electoral politics decreases substantially when the management of intergovernmental grants is under tight scrutiny by the opposition parties, mass media and the population. These findings suggest that distributive politics can be conceptualised as a political agency problem whose prevalence is seriously constrained by the improvement of the transparency of public policies management.     

Health Care Versus Border Care: Justification and Hypocrisy in the Multilevel Negotiation of Irregular Migrants’ Access to Fundamental Rights and Services

Abstract

Providing—and also not providing—public services to unlawful residents implies a certain cost for host societies, and both inclusion and exclusion involve localized renegotiations of fundamental rights, legitimate needs, and social membership. Based on original qualitative research data, this article compares how, why, and under which conditions irregular migrants are granted or denied access to healthcare services provided in London and Barcelona. From a multi-level perspective and by drawing on organization theory, I highlight key differences in how the responsible governments deal with the underlying contradictions and thereby either help or hinder effective policy implementation.