Abstract

This study explores how contracting out can contribute to the fiscal sustainability of public services. Together with the economic advantage that contracting out can lower production costs over government production in house, contracting theory informs that contracting out can offer an insulation of efficient and effective service production from the political incentive problem of the principal. Hypotheses from the perspective are tested over panel data on subnational public service facilities operated via user fees in South Korea. As hypothesized, the analysis results confirm a positive relationship of contracting out with net revenue over government production. While both regionally/municipally owned corporations (R/MOCs) and nonprofits demonstrate their capabilities as competent partners of a government, nonprofits are more effective at the generation of net revenue. The study discusses the implications of contracting out for publicness and a style of governance that actively utilizes the flexibility and expertise of organizations outside a government.

摘要

本研究探讨了外包如何促进公共服务的财政可持续性。与政府内部生产相比，外包具有降低生产成本的经济优势，承包理论表明，外包可以使高效且有效的服务生产免受委托人的政治激励问题的影响。从这个角度来看的假设是通过通过以下方式运营的地方公共服务设施的面板数据进行检验的：韩国的使用费。正如假设的那样，分析结果证实了外包与政府生产净收入之间存在正相关关系。虽然地区/市属企业 (R/MOC) 和非营利组织都展示了其作为政府的有力合作伙伴的能力，但非营利组织在产生净收入方面更有效。该研究讨论了外包对公共性和积极利用政府以外组织的灵活性和专业知识的治理方式的影响。