Political ideology, regulatory framework and contracting out
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Policy Paper
Data
2023
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The influence of political ideology on make-or-buy choices for public provision has been
a subject of intense debate from various theoretical perspectives, but the empirical
evidence so far has been mixed. This paper delves into this issue by using a regression
discontinuity (RD) design to examine the effect of mayoral ideology on contracting-out
and public-sector outsourcing in Brazil, a country with broad constitutional guarantees
and intergovernmental transfers for local public service provision. We estimate no
ideological effect on contracting-out healthcare facilities, early-childhood schools or in
outsourcing of the public workforce. Constraints on local regulatory and fiscal autonomy
in local public services, coupled with a lack of strong ideological alignment between
parties and candidates, curtail partisan differences in decisions whether to procure or
provide services in-house.
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en
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Área do Conhecimento CNPQ
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