Privatization

An International Review Of Performance

By: Graeme Hodge

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Paperback | 31 December 1999 | Edition Number 1

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Contracting out public sector services and divesting public enterprises are reforms that have enjoyed widespread global popularity in recent years. Better services, lower prices and greater accountability are the promises made by politicians, senior executives, and investment companies when functions are moved from the public sector to private enterprise. But in "Privatization," Graeme A. Hodge challenges these assumptions. Through an examination of hundreds of international studies on the performance of privatization activities, Hodge demonstrates that privatizing public services is often not the guaranteed panacea portrayed by its political supporters. Importantly, privatization activities can lead to modest gains, but there are also winners and losers in this reform. It therefore deserves far more care and balanced debate than it usually attracts.

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List of Tables and Figures	p. ix
Acknowledgments	p. xiii
List of Acronyms	p. xv
Concepts Underpinning Privatization
Introduction	p. 3
Waves of Reform	p. 4
Aims of This Book	p. 7
Importance of Carefully Reviewing Privatization	p. 8
Structure of the Book	p. 9
Privatization Patterns	p. 13
Defining Privatization	p. 13
Privatization Objectives	p. 17
Objectives When Selling an Enterprise	p. 17
Objectives When Outsourcing	p. 24
Occurrence Patterns: Selling Enterprises	p. 25
Occurrence Patterns: Outsourcing	p. 28
Privatization Trends over Time	p. 31
Theoretical Foundations for Privatization	p. 35
Models Underpinning Privatization	p. 35
Public Choice Theory	p. 36
Agency Theory	p. 38
Transaction Cost Analysis	p. 39
Managerialism/New Public Management	p. 40
Property Rights Theory	p. 41
Measurement Issues	p. 43
Historical/Contingency Theory	p. 44
Performance Evaluation Framework
Performance Framework for the Assessment of Effectiveness	p. 49
Performance Domain Based on Privatization Models	p. 49
Performance Domain Based on Privatization Objectives	p. 50
Performance Domain Based on Public Sector Activities	p. 50
Combined Performance Framework	p. 55
Review Methodology	p. 59
Integrating Research Studies	p. 60
The Meta-analytic Approach	p. 64
Statistical Characteristics: The Effect Size Concept	p. 69
The Application of Meta-analysis to Privatization Performance	p. 72
Empirical Knowledge of Privatization Performance
Performance Data for Privatization as Contracting Out	p. 77
Searching for Data	p. 77
Study Selection Process	p. 80
Characteristics of the Literature	p. 88
Reviewing the Effectiveness of Privatization as Contracting Out	p. 97
A Look at the Empirical Findings	p. 97
Some Key Historical and Methodological Highlights: Refuse Collection	p. 100
Narrative Review of Contracting Out Public Sector Services	p. 103
Economic Performance	p. 107
Effect Sizes: Economic Performance by Service	p. 110
Contracting Out and Contracting In	p. 117
Other Possible Moderator Variables	p. 119
Meaning of Effect Size Findings	p. 121
Other Issues in Cost Comparisons	p. 125
Conclusions on Cost Savings	p. 128
Social Performance	p. 129
A Meta-analysis of Noneconomic Performance Measurements	p. 136
Democratic Performance	p. 142
Legal Performance	p. 152
Political Performance	p. 153
Conclusions	p. 155
Performance Data for Privatization as Enterprise Sales	p. 157
Searching for Data	p. 157
Characteristics of the Literature	p. 164
Reviewing the Effectiveness of Privatization as Enterprise Sales	p. 173
Economic Performance	p. 175
Meta-analytic Review of Economic Performance	p. 186
The Meaning of Effect Sizes	p. 198
Social Performance	p. 202
A Narrative Review of Social Performance	p. 202
Meta-analytic Review of Social Performance	p. 210
Democratic Performance	p. 213
Political Performance	p. 219
Legal Performance	p. 224
Conclusions	p. 225
Learning to Get the Balance in Privatization	p. 229
The Learning Philosophy	p. 230
Theory	p. 231
The Effectiveness of Contracting Out Services	p. 232
Do Contracting Benefits Outweight Costs in Public Sector Services?	p. 236
Private Sector Firms and Markets	p. 239
Probity, Accountability, and Governance	p. 240
The Effectiveness of Selling Enterprises	p. 242
Conclusions	p. 245
Key Statistical Tests	p. 249
Literature Review Search Terms for Databases	p. 251
Summary of Effect Size Derivations for Privatization as Contracting Out	p. 253
Summary of Effect Size Derivations for Privatization as Enterprise Sales	p. 257
Notes	p. 263
References	p. 281
Table of Contents provided by Syndetics. All Rights Reserved.

Privatization

An International Review Of Performance

At a Glance

Paperback

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