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Vertical Integration in Municipal Service Provision:
Unformatted Document Text:  3 Notes 1 We want to thank an anonymous reader of an earlier version of this paper for clarifying this point. 2 Specific typology coding rules can be found in Appendix A. 3 Complete contracting refers to “when a government enters into a contract with another entity for the entire production and distribution of a service, although the government retains regulatory control over the ultimate service provision” (Brown and Potoski 2001, 3). 4 Joint contracting refers to a production mechanism where “a government contracts with another entity but retains a portion of the production of the service in-house” (Brown and Potoski 2001, 3). 5 For example, the pool for potential non-profit services that become vertically integrated by local governments (coded as using non-profit service delivery in 1997) in this service category was only 12. Hence, the non-meterable monopoly service change ratio of 50 percent associated with non-profits represents a total of 6 cases of the service being internalized. The related for-profit vertical integration rate was produced by 34 from a potential pool of 52. 6 “Influence” is defined as the change in predicted probability when, holding all other variables at their means and setting dichotomous variables to zero, the variable of interest is moved from its mean to one standard deviation above its mean or from zero to one for dummy variables.

Authors: Feiock, Richard., Lamothe, Scott. and Lamothe, Meeyoung.
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3


Notes
1
We want to thank an anonymous reader of an earlier version of this paper for clarifying this point.
2
Specific typology coding rules can be found in Appendix A.
3
Complete contracting refers to “when a government enters into a contract with another entity for the entire
production and distribution of a service, although the government retains regulatory control over the
ultimate service provision” (Brown and Potoski 2001, 3).
4
Joint contracting refers to a production mechanism where “a government contracts with another entity but
retains a portion of the production of the service in-house” (Brown and Potoski 2001, 3).
5
For example, the pool for potential non-profit services that become vertically integrated by local
governments (coded as using non-profit service delivery in 1997) in this service category was only 12.
Hence, the non-meterable monopoly service change ratio of 50 percent associated with non-profits
represents a total of 6 cases of the service being internalized. The related for-profit vertical integration rate
was produced by 34 from a potential pool of 52.
6
“Influence” is defined as the change in predicted probability when, holding all other variables at their
means and setting dichotomous variables to zero, the variable of interest is moved from its mean to one
standard deviation above its mean or from zero to one for dummy variables.


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