Relative Efficiency of Intermunicipal Provision

  • Peter B. Boorsma
  • Piet de Vries


The intermunicipal arrangement is one of the opportunities municipalities can use to redece their budget problems. Intermunicipal arrangements, privatizing activities, such as contracting out, and straightforward budget cuts were popular instruments used in response to the fiscal squeeze during the ‘eighties. It is conceivable that the establishment of such an intercommunal arrangement is preferred for ideological reasons. The intercommunal arrangement might be an alternative to contracting out to a private firm. In this way the intercommunal is an option to maintain public employment. In the Netherlands the establishment of intermunicipal arrangements has been stimulated by the Act on Intercommunal Arrangements (Wet Gemeenschap-pelijke Regelingen [WGR], 1950, revised 1975/85)1.


Relative Efficiency Moral Hazard Private Firm Adverse Selection Public Organization 
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© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Peter B. Boorsma
  • Piet de Vries

There are no affiliations available

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