Contracting out by Urban Governments

Abstract

In this article the author seeks to provide a review of the recent literature on contracting out for urban government services in the United States. The review is selective in that the author focuses on analytical frameworks of the contracting out decision, the efficiency argument, empirical efficiency, and cost studies, as well as other considerations such as accountability, equity, and tax consequences. He concludes by wondering whether the common conclusion about the benefits of contracting out urban government services may at times have been exaggerated.