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Pricing joint use of municipal services: Theoretical perspectives and regulatory issues
Author(s) -
Valkama Pekka,
Bailey Stephen J.
Publication year - 2019
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/faam.12180
Subject(s) - localism , discretion , business , financial services , municipal services , joint (building) , economics , public economics , finance , industrial organization , public administration , political science , architectural engineering , politics , law , engineering
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.