Public–Private Partnerships and Cooperative Agreements in Small and Rural Municipalities

Abstract

Despite the extensive literature examining public–private partnerships in the delivery of public services, few studies have focused on smaller, rural municipalities. This study addresses this shortcoming by focusing on towns in the state of New Hampshire (USA). Both quantitative and qualitative data were collected on the use of public–private partnerships in the provision and production of public services. Through a municipal survey we have documented that even the smallest municipalities have a range of experiences with various forms of partnerships ranging from contracting with for-profit private firms to non-profit organizations. As expected, services where contracts could be readily crafted and monitored tended to be outsourced most. While respondents to the survey were generally satisfied with current arrangements, they were least satisfied with services that were outsourced. This result is inconsistent with a central theoretical justification for outsourcing; that is, outsourcing will provide better service at lower prices. One possible explanation that is relevant to smaller and rural governments is that a significant portion of New Hampshire municipalities expressed concern about receiving insufficient bids, a necessary condition for outsourcing to be effective and promote competition. But for Int Adv Econ Res (2007) 13:522–523 DOI 10.1007/s11294-007-9118-7