Local Public Services Delivery Mechanisms: A Literature Review

Abstract

The paper presents a literature review about local public services delivery mechanisms like: in-house provisions, privatization, and inter-municipal cooperation. The aim of this paper is to review the development of the studied field, to find out which delivery mechanism dominates in a certain period of time, and to review which economic research focus dominates in the studied field. Possible effects on the economies of scale, costs reductions, efficiency, and other economic-political-institutional-social factors in the provision of local public services are scrutinized, using a content analysis breakdown. Results show that most studies are country studies and empirical studies in increasing numbers in recent years. The choice of local public services delivery mechanisms are mostly influenced by the size of the local government, the efficiency of service provision, the resources available, and the institutional framework. Politics and market competition also play a role in the decision-making process.