PFM Articles 
Effects of “Democratic Control” on the Efficiency of Local Public Enterprises: Empirical Evidence for Water Suppliers in Eastern Germany
PETER HAUG
PFM, Vol. 8 No. 1,
(2008)
This paper deals with the effects of interference by lo¬cal governments on the business affairs of publicly owned utilities. A partial model is presented to illustrate the conse¬quences of “democratic control” on the public managers’ effort and the efficiency of local public production. To empi¬rically check the theoretical results, a two-stage data enve¬lopment analysis (DEA) was carried out on a sample of Eas¬tern German water suppliers. The organizational form is used in the regression analysis to measure the degree of municipal control. The results of the OLS- and Tobit regression indicate an efficiency-enhancing effect on organizational forms with less distinctive control options for local politicians.
Subscribers: Login to read this article
Guests: Subscribe to PFM, or purchase individual article access for $10.
The article is not available for automatic download. We will email the article to you as a PDF file upon receiving your payment, typically within 24 hours.
