We document that switching from laissez-faire production to public procurement in residential waste collection in Finland reduces the number of firms active in the local market, but induces a statistically significant and large decrease in unit prices on average. While public procurement, thus, seems to be desirable from the citizens’ perspective, not all municipalities adopt public procurement. We provide descriptive evidence that municipal council composition is associated with the chosen regime. This suggests that local politics may be one obstacle for the efficient provision of local public goods.

中文翻译：

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公共采购与自由放任：来自家庭废物收集的证据

我们记录到，在芬兰的住宅废物收集中，从自由放任生产转向公共采购，减少了活跃于当地市场的公司数量，但平均而言导致了统计上的显着且大幅下降。因此，从公民的角度看，公共采购似乎是可取的，但并非所有市政当局都采用公共采购。我们提供了描述性证据，证明市政委员会的组成与所选政权有关。这表明地方政治可能是有效提供地方公共物品的一个障碍。