Article2013

Contracting Revisited: Determinants and Consequences of Contracting Out for Public Education Services

58 citations0/0 files storedPublic Administration Review

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Public Policy and Administration Research Local Government Finance and Decentralization Outsourcing and Supply Chain Management

Abstract

The determinants and consequences of contracting are examined in more than 1,000 Texas school districts for 1997–2008. The results largely replicate prior research by O'Toole and Meier, showing that contracting is negatively related to spending on school districts’ core instructional functions and that the relationship between contracting and bureaucracy is reciprocal. The present findings, based on data from a longer period, indicate that contracting is positively related to school district performance. This article also finds support for an extended model of contracting determinants involving two environmental shocks: negative budget shocks and enrollment shocks.

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References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1991Exploration and Exploitation in Organizational Learning 2011External Control of Organizations: Resource Dependence Perspective 1979The External Control of Organizations: A Resource Dependence Perspective 1978Organizational Strategy, Structure, and Process 1981The Economics of Organization: The Transaction Cost Approach 1984The New Economics of Organization 2000The New Public Service: Serving Rather than Steering

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