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Julkaisusihteeri
Irmeli Honka
Puh. (09) 2535 7338
E-mail: etunimi.sukunimi@labour.fi

The Choice Between the In-house Provision and the Competitive Out-house Provision of Public Services

Työpapereita 216

Tekijä(t): Lehto Eero

This study focuses on the production welfare services which are purchased by the government. We consider whether the delivery of the service should be public or private. The social impact of the service is determined by the satisfaction of unforeseen individual needs. Assuming that the information about these needs is ex post observed only by the producer of the service favours public production. Auctioning the right-to-produce contract, however, selects the most cost-effient private supplier. Whether private production is optimal resolves from the trade-off between cost effiency and a failure in meeting individual needs. We also analyse investments in monitoring.

Julkaistu: 1.1.2006
JEL: L33, L80
ISBN: 952-209-020-4
ISSN: 1795-1801
Julkaisu PDF-muodossa


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Puh. (09) 2535 7330

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Heikki Taimio
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Jaana Toivainen
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design N&S

Valokuvat: Maarit Kytöharju


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