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Is Private Delivery of Public Services Really Cheaper? Evidence from Public Road Maintenance in Denmark

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Abstract

It is a general finding that cost savings may be obtainedby involving the private sector in publicservice production. This fact should be ofparticular interest to countries with largepublic sectors, such as the Scandinaviancountries, where private involvement has alarge potential. This paper investigatesthis potential by focusing on the Danishroad sector. 275 municipalities areresponsible for the maintenance ofapproximately 60,000 km of Denmark's70,000 km public roads. The analysisconfirms the international evidence:Involving the private sector also seems tomake it possible for the public sector toobtain large cost savings in theScandinavian countries.

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  1. Department of Political Science, University of Aarhus, DK-8000 Aarhus C, Denmark

    Jens Blom-Hansen

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  1. Jens Blom-Hansen
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Blom-Hansen, J. Is Private Delivery of Public Services Really Cheaper? Evidence from Public Road Maintenance in Denmark. Public Choice 115, 419–438 (2003). https://doi.org/10.1023/A:1024274527502

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