45th Congress of the European Regional Science Association: "Land Use and Water Management in a Sustainable Network Society", 23-27 August 2005, Amsterdam, The Netherlands
Local governments in the U.S. are struggling with financial shortfalls due to economic downturns, loss of federal assistance, and resistance to raising more revenue through property taxes. This has led to increased interest in provision of municipal services by private contractors and cooperative arrangements in an effort to increase efficiency. Using results from previous studies in Illinois and Wisconsin we attempt to model the municipal decision of how to provide residents town services. In order to test the applicability of past work to smaller towns we conducted a survey of the mostly rural state of New Hampshire in the summer of 2004. This paper will provide descriptive statistics of this New Hampshire survey and comparisons to the results of past work. We also construct decision-making models using logit, probit, and Poisson techniques which examine the influence of population, location and other exogenous factors on the decision to privatize.