000			01809nam a22001457a 4500
999			_c528336 _d528336
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100			_aWei, Wenchi and Chen, Xin _949171
245			_aService outsourcing and government fiscal conditions: Do market competition, bureaucrat support, and management capacity matter?
260			_aAmerican Review of Public Administration
300			_a54(6), Aug, 2024: p.568-689
520			_aScholars 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.- Reproduced https://journals.sagepub.com/doi/full/10.1177/02750740241232678
650			_aPublic service outsoaring, Fiscal conditions, Instrumental variable estimation. _949172
773			_aAmerican Review of Public Administration
942			_cAR