Outsourcing Services: A Theory of Special District Incorporation. Issue 6 (2nd November 2021)

• Record Type: Journal Article
• Authors: Park, HyungGun; Park, Hyung Jun
• Is Part Of: Public performance & management review. Volume 44:Issue 6(2021)
• Page Start: 1215
• Page End: 1238
• Publication Date: 2021-11-02
• Subjects: Special district creation -- government contracting -- service characteristic -- negative binomial regression; Civil service -- Labor productivity -- Periodicals; Civil service -- Labor productivity -- United States -- Periodicals; Government productivity -- Periodicals; Government productivity -- United States -- Periodicals; Public administration -- Periodicals; Public administration -- United States -- Periodicals; Civil service -- Labor productivity; Government productivity; Public administration; United States; Periodicals; 351.05
• DOI: 10.1080/15309576.2021.1972430
• Languages: English
• ISSNs: 1530-9576

Abstract

Abstract: In this study, we assume special district incorporation is the outsourced service from general-purpose governments. Once a special district is created, general-purpose governments have little incentives to provide overlapping services together with special districts in a designated area. Since any failure of management is not shared between politically and financially independent entities, the general-purpose governments externalize some service functions with some contribution to government performance. We test how the costs associated with service production of general-purpose governments affect the incorporation of specific types of special districts. Using negative binomial estimations, we find that services that require the high level of initial investment and have performance qualities that are difficult to evaluate are selectively outsourced.