Impacts of privatization: Use of multimodal survey

Abstract

Given current local government fiscal stress, the privatization of public services has been considered as a way to balance local government budgets and improve community service efficiencies. However, along with economic efficiency, the social efficiency of the privatization should be considered. Social efficiency not only incorporates economic efficiency but also includes accountability and equity. In this study, the economic and social impact of the potential privatization of a local utility (Churchill County Communications) is estimated. A web-based questionnaire was employed to collect data quickly and efficiently from CC Communication's employees and employ the questionnaire results in the analysis. Using and augmented input–output model of Churchill County, the analysis showed that privatization would reduce Churchill County employment by 279 jobs and reduce county household income by $36.171 million. In addition, the county could lose up to 14,735 hr of volunteer time and $85,233 in charitable donations if CC Communications were privatized.