58
GERMÀ BEL, XAVIER FAGEDA Y MELANIA MUR
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Abstract
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 fac-
tors in small municipalities. The results of empirical analysis show that, for both services, the financial
situation ofthe 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 inter-
municipal cooperation play a particularly relevant role in small municipalities.
Keywords: Privatization, contracting-out, local governments, small municipalities.
JEL classification: L33, R51, H72.
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