Cities and Privatization

Abstract

Cities across America look for management strategies useful for accomplishing their responsibilities and programs. While some cities include privatization strategies in their management portfolios, others do not, and the underlying reasons are not readily apparent. This study seeks to gain some insight into this disparity through several questions: Why do some cities use more privatization than others? Are privatization levels higher in fiscally healthy or fiscally stressed cities? Where are the cities that use privatization located? This study attributes municipal privatization levels in medium‐sized cities, in part, to degree of wealth, fiscal stress, and location. The findings suggest that privatization levels are higher in wealthy, fiscally healthy, suburban cities.

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