ABSTRACT We use an ordered logistic model to empirically examine the factors that explain varying... more ABSTRACT We use an ordered logistic model to empirically examine the factors that explain varying degrees of private involvement in the US water sector through public–private partnerships. Our estimates suggest that a variety of factors help explain greater private participation in this sector. We find that the risk to private participants regarding cost recovery is an important driver of private participation. The relative cost of labour is also a key factor in determining the degree of private involvement in the contract choice. When public wages are high relative to private wages, private participation is viewed as a source of cost savings. We thus find two main drivers of greater private involvement: one encouraging private participation by reducing risk, and another encouraging government to seek out private participation in lowering costs.
ABSTRACT The Economics and Politics of High Speed Rail: Lessons from Experiences Abroad, by Danie... more ABSTRACT The Economics and Politics of High Speed Rail: Lessons from Experiences Abroad, by Daniel Albalate and Germà Bel, introduces the main questions policy makers and scholars should examine when considering and studying HSR implementation, with particular emphasis on the US's recent interest in this technology and possible application in California. This study is a rigorous investigation of the economic and political challenges and ramifications of implementing new public transportation technology and its effects on taxpayers.
This paper aims at explaining the differences in the results of empirical studies of motivations ... more This paper aims at explaining the differences in the results of empirical studies of motivations for local privatization by undertaking a meta-regression. Our results suggest that fiscal constraints and interest groups were especially relevant in the early studies of the US, which considered several services. Further, studies that focus on one service capture the influence of scale economies more accurately. Finally, our results show that small towns are more affected by fiscal and political factors, while ideology plays a major role for European and large cities. Thus, no clear conclusions emerge from this literature because the findings of each study are sensitive to its characteristics.
Mixed public–private firms are increasingly used in several European countries. This paper makes ... more Mixed public–private firms are increasingly used in several European countries. This paper makes use of survey data from Spanish municipalities to examine the motivations of local governments for engaging in partial privatisation of local service delivery of water distribution and solid waste collection. The empirical analysis indicates that mixed firms emerge as a pragmatic middle way between purely public and purely private production. Indeed, local governments make use of mixed firms when cost considerations, financial constraints and private interests exert contradictory pressures. Political and ideological factors play no significant role in that decision.
This paper examines factors determining airport charges. Using data for 100 large airports in Eur... more This paper examines factors determining airport charges. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and nearby airports imposes some discipline on the pricing behavior of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. We also find that private airports not regulated charge higher prices than public or regulated airports. Finally, the regulation mechanism does not seem to influence substantially the level of airport charges.
The private sector plays an increasing and relevant role in highway funding and management. For t... more The private sector plays an increasing and relevant role in highway funding and management. For that reason, the regulation designed and enforced by public authorities becomes even more important for the social welfare results generated by this process. In this study, we analyze the current trends in highway funding and management paying special attention on the recent process of privatization and its motivations. Since public ownership and regulation are substitutes for government intervention, we check the hypothesis that highways privatization induces more strict regulation. Indeed, we observe that as the private sector increases its size, toll regulation becomes more detailed.
Many empirical works have been devoted to analysing the factors explaining local privatisation. O... more Many empirical works have been devoted to analysing the factors explaining local privatisation. Overall, most of the empirical analyses have low explanatory power due to the methodological difficulties in capturing the dynamic nature of the privatisation decision. The variables most often considered are those related to fiscal stress and cost reduction and political processes and ideological attitudes. Our review indicates that fiscal stress and pressure from interest group are explanatory factors of local privatisation in those early studies devoted to the US that consider a broad range of services. Furthermore, cost considerations seem to be taken into account by local governments, particularly when scale economies and transaction costs are taken together. Finally, ideological attitudes of policy makers do not seem to influence local service delivery choices in any systematic way.
ABSTRACT We use an ordered logistic model to empirically examine the factors that explain varying... more ABSTRACT We use an ordered logistic model to empirically examine the factors that explain varying degrees of private involvement in the US water sector through public–private partnerships. Our estimates suggest that a variety of factors help explain greater private participation in this sector. We find that the risk to private participants regarding cost recovery is an important driver of private participation. The relative cost of labour is also a key factor in determining the degree of private involvement in the contract choice. When public wages are high relative to private wages, private participation is viewed as a source of cost savings. We thus find two main drivers of greater private involvement: one encouraging private participation by reducing risk, and another encouraging government to seek out private participation in lowering costs.
ABSTRACT The Economics and Politics of High Speed Rail: Lessons from Experiences Abroad, by Danie... more ABSTRACT The Economics and Politics of High Speed Rail: Lessons from Experiences Abroad, by Daniel Albalate and Germà Bel, introduces the main questions policy makers and scholars should examine when considering and studying HSR implementation, with particular emphasis on the US's recent interest in this technology and possible application in California. This study is a rigorous investigation of the economic and political challenges and ramifications of implementing new public transportation technology and its effects on taxpayers.
This paper aims at explaining the differences in the results of empirical studies of motivations ... more This paper aims at explaining the differences in the results of empirical studies of motivations for local privatization by undertaking a meta-regression. Our results suggest that fiscal constraints and interest groups were especially relevant in the early studies of the US, which considered several services. Further, studies that focus on one service capture the influence of scale economies more accurately. Finally, our results show that small towns are more affected by fiscal and political factors, while ideology plays a major role for European and large cities. Thus, no clear conclusions emerge from this literature because the findings of each study are sensitive to its characteristics.
Mixed public–private firms are increasingly used in several European countries. This paper makes ... more Mixed public–private firms are increasingly used in several European countries. This paper makes use of survey data from Spanish municipalities to examine the motivations of local governments for engaging in partial privatisation of local service delivery of water distribution and solid waste collection. The empirical analysis indicates that mixed firms emerge as a pragmatic middle way between purely public and purely private production. Indeed, local governments make use of mixed firms when cost considerations, financial constraints and private interests exert contradictory pressures. Political and ideological factors play no significant role in that decision.
This paper examines factors determining airport charges. Using data for 100 large airports in Eur... more This paper examines factors determining airport charges. Using data for 100 large airports in Europe, we find that they charge higher prices when they move more passengers. Additionally, competition from other transport modes and nearby airports imposes some discipline on the pricing behavior of airports. Low-cost carriers and airlines with a high market share seem to have a stronger countervailing power. We also find that private airports not regulated charge higher prices than public or regulated airports. Finally, the regulation mechanism does not seem to influence substantially the level of airport charges.
The private sector plays an increasing and relevant role in highway funding and management. For t... more The private sector plays an increasing and relevant role in highway funding and management. For that reason, the regulation designed and enforced by public authorities becomes even more important for the social welfare results generated by this process. In this study, we analyze the current trends in highway funding and management paying special attention on the recent process of privatization and its motivations. Since public ownership and regulation are substitutes for government intervention, we check the hypothesis that highways privatization induces more strict regulation. Indeed, we observe that as the private sector increases its size, toll regulation becomes more detailed.
Many empirical works have been devoted to analysing the factors explaining local privatisation. O... more Many empirical works have been devoted to analysing the factors explaining local privatisation. Overall, most of the empirical analyses have low explanatory power due to the methodological difficulties in capturing the dynamic nature of the privatisation decision. The variables most often considered are those related to fiscal stress and cost reduction and political processes and ideological attitudes. Our review indicates that fiscal stress and pressure from interest group are explanatory factors of local privatisation in those early studies devoted to the US that consider a broad range of services. Furthermore, cost considerations seem to be taken into account by local governments, particularly when scale economies and transaction costs are taken together. Finally, ideological attitudes of policy makers do not seem to influence local service delivery choices in any systematic way.
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Papers by Germa Bell