Service Outsourcing and Government Fiscal Conditions: Do Market Competition, Bureaucrat Support, and Management Capacity Matter?
研究服务外包对美国地方政府财政状况的影响，发现外包能改善预算平衡和债务水平，且市场竞争、官僚支持和管理能力会调节这一效果。
Scholars have long regarded government fiscal stress as a crucial factor driving public service outsourcing; however, further investigation is still needed to determine whether service outsourcing in turn helps governments improve fiscal conditions. Public choice theory suggests that outsourcing services can lead to efficiency improvement and cost savings. Nevertheless, transaction costs theory implies that the costs associated with service outsourcing may offset or even outweigh its potential benefits. Moreover, the extent of transaction costs depends on contextual factors such as market competition, bureaucrat support, and government management capacity. Empirically, we employ an instrumental variable estimation approach to examine the impact of service outsourcing on the budget balances and debt levels of U.S. municipalities. We find that service outsourcing improves government fiscal conditions, with contextual factors playing an important role in moderating this effect. Additionally, outsourcing services to different types of contractors has varying implications for government fiscal conditions.