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CESifo Economic Studies

Perspectives on Public Sector Outsourcing: Quasi–Markets and Prices

Journal Article
Jordahl, Henrik (2019). “Perspectives on Public Sector Outsourcing: Quasi–Markets and Prices”. CESifo Economic Studies 65(4), 343–348.

Henrik Jordahl

Public sector outsourcing, in the form of private production of tax-financed services, is on the increase with economic and social consequences for consumers, taxpayers, and employees. The development has given rise to so-called quasi-markets with choice and competition between public, for-profit, and non-profit providers. By introducing the main characteristics of quasi-markets with a focus on prices, this article provides background perspectives. It sets the stage for the other six articles on public sector outsourcing in this special issue of the journal. (JEL codes: D23, H11, H44, L33).