¿Por qué se privatizan servicios en los municipios (pequeños)? Evidencia empírica sobre residuos sólidos y agua.

This paper examines factors influencing privatization in solid waste collection and water distribution. We take advantage of data for a sample of municipalities of Aragon to identify the most important factors in small municipalities. The results of empirical analysis show that, for both services, the financial situation of the municipality influences significantly in delivery choices of small municipalities, while ideological factors are not relevant. The motivations related to costs differ according to the specific characteristics of the considered service. In this regard, the dispersion of population strata and intermunicipal cooperation play a particularly relevant role in small municipalities