Pricing joint use of municipal services: theoretical perspectives and regulatory issues

Pekka Valkama; Stephen J. Bailey

doi:10.1111/faam.12180

Pricing joint use of municipal services: theoretical perspectives and regulatory issues

Pekka Valkama^*, Stephen J. Bailey

^*Corresponding author for this work

GSBS School Office

Research output: Contribution to journal › Article › peer-review

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Abstract

This paper analyses price regulation of inter-municipal contracts in Finland to demonstrate interpretative problems of regulatory rules specifying full-cost or market prices and, by so doing, deepen understanding of the theoretical underpinnings for pricing collaborative municipal services. It considers how to price inter-municipal services taking into account the specific socio-economic nature of inter-municipal cooperation, including both financial and non-financial objectives, through a new joint-use pricing model of municipal services that challenges the supremacy of full-cost pricing requirements in cases of inter-municipal collaborative contracting. Acknowledging limitations and benefits, it concludes European Single Market rules militate against municipal discretion and localism.

Original language	English
Pages (from-to)	20-36
Number of pages	17
Journal	Financial Accountability and Management
Volume	35
Issue number	1
Early online date	3 Sept 2018
DOIs	https://doi.org/10.1111/faam.12180
Publication status	Published - Feb 2019

Keywords

full-cost pricing
inter-municipal contracting
joint use
market pricing
public procurement

ASJC Scopus subject areas

General Business,Management and Accounting
Economics, Econometrics and Finance(all)

Documents and Links

10.1111/faam.12180

Final published versionFinal published version, 310 KBLicence: CC BY-NC-ND

Cite this

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abstract = "This paper analyses price regulation of inter-municipal contracts in Finland to demonstrate interpretative problems of regulatory rules specifying full-cost or market prices and, by so doing, deepen understanding of the theoretical underpinnings for pricing collaborative municipal services. It considers how to price inter-municipal services taking into account the specific socio-economic nature of inter-municipal cooperation, including both financial and non-financial objectives, through a new joint-use pricing model of municipal services that challenges the supremacy of full-cost pricing requirements in cases of inter-municipal collaborative contracting. Acknowledging limitations and benefits, it concludes European Single Market rules militate against municipal discretion and localism.",

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note = "Funding Information: The Finnish Supreme Administrative Court (KHO, 2011:24) used the term {\textquoteleft}own-cost principle{\textquoteright}, causing confusion by implying only those costs borne by the local government and so diverging, perhaps significantly, from {\textquoteleft}full costs{\textquoteright} where the latter is funded by other stakeholders via intergovernmental grants, investment subsidies, sponsorship, donations and bequests, etc.",

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KW - market pricing

KW - public procurement

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Pricing joint use of municipal services: theoretical perspectives and regulatory issues

Abstract

Keywords

ASJC Scopus subject areas

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