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- Title
Bureaucracy, organizational redundancy, and the privatization of public services.
- Authors
Miranda, Rowan; Lerner, Allan
- Abstract
If there exists an idea common to both privatization theory and evidence, it is that a simple transfer of a service from a public monopoly to a private one is unlikely to yield improvements in either service quality or cost. Does zero redundancy in service delivery then promote optimal efficiency as many reform efforts contend? Using data from a large sample of cities, authors demonstrate that service delivery arrangements that mix private or nonprofit sector production with some in-house government production are generally cost effective. In some instances, such arrangements may be more cost effective than exclusive production by the private sector alone. This article suggests that the deliberate introduction of redundancy can improve organizational and system performance. In this article, authors asked whether organizational redundancies in service delivery are a useful means for averting monopoly outcomes. Using data from a large sample of cities, it was demonstrated that benchmarking could be cost effective. In some instances, such arrangements may be more cost effective than exclusive production by the private sector alone. INSET: Methodology and research design..
- Subjects
BUREAUCRACY; COST effectiveness; PRIVATIZATION; MUNICIPAL services; BENCHMARKING (Management); ECONOMIC structure; QUALITY of service
- Publication
Public Administration Review, 1995, Vol 55, Issue 2, p193
- ISSN
0033-3352
- Publication type
Article
- DOI
10.2307/977185