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Methods of Services Provision in Slovak Towns

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Author(s): Emília Sičáková-Beblavá

Journal: Central European Journal of Public Policy
ISSN 1802-4866

Volume: 3;
Issue: 1;
Start page: 4;
Date: 2009;
Original page

Keywords: local authorities | insourcing | outsourcing | transaction costs | Brown-Potoski model

ABSTRACT
This article deals with the methods of services provision in Slovak towns.  It addresses decision-making concerning selected services provision, based on a transaction cost economic model. The article looks at five types of services from that point of view. These are core services, i.e., services that are provided in most Slovak towns, thereby allowing outcomes of decision-making to be compared, and services which can be outsourced according to transaction cost theory. Findings partially confirm the hypothesis: Slovak towns do outsource, though “insourcing” moderately prevails. However, a comparison of several research studies in the area indicates a trend towards higher outsourcing of such local services provision.  The findings show that public bodies do not always select the most suitable methods of services provision, as suggested by the transaction costs theory (the Brown-Potoski model). This indicates that it is not only economic models that influence decision-making concerning the organization of services provision in the Slovak towns.
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