Decentralization of government and contracting with the private sector

dc.contributor.authorCortés, Darwin
dc.date.accessioned2017-10-13T13:58:35Z
dc.date.available2017-10-13T13:58:35Z
dc.date.issued2011
dc.description.sponsorshipUsing a simple model of incomplete contracts to characterize the relationship between decentralization and contracting with the private sector, I show that, provided that the expected reduction in quality is low, more decentralized local governments will contract more with the private sector. Then, I use the 2001 decentralization reform in Colombia to test these ideas. Particularly important, the reform entitles more decentralized municipalities to sign subsidy contracts with private schools, and departments (a higher level of government) to do so for the less decentralized municipalities. I take advantage of the fact that the level of decentralization is decided using an exogenous population threshold to identify causal effects using Regression Discontinuity Design. The empirical results are consistent with the prediction of the model. More decentralized municipalities subsidize more students in private schools. There are no significant differences in enrolment in public schools across more and less decentralized municipalities.ca
dc.format.extent54 p.
dc.format.mimetypeapplication/pdf
dc.identifier.urihttps://hdl.handle.net/2445/116596
dc.language.isoengca
dc.publisherInstitut d’Economia de Barcelonaca
dc.relation.isformatofReproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions
dc.relation.ispartofIEB Working Paper 2011/43
dc.relation.ispartofseries[WP E-IEB11/43]cat
dc.rightscc-by-nc-nd, (c) Cortés et al., 2011
dc.rights.accessRightsinfo:eu-repo/semantics/openAccessca
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.sourceIEB (Institut d’Economia de Barcelona) – Working Papers
dc.subject.classificationDescentralització administrativacat
dc.subject.classificationEmpresescat
dc.subject.classificationReforma de l'educació
dc.subject.classificationFederalismecat
dc.subject.otherDecentralization in governmenteng
dc.subject.otherBusiness enterpriseseng
dc.subject.otherEducational change
dc.subject.otherFederalismeng
dc.titleDecentralization of government and contracting with the private sectorca
dc.typeinfo:eu-repo/semantics/workingPaperca

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