This study examines the privatization behavior of county governments and treats contracting and franchising as separate decision-making activities. Contracting decisions are influenced primarily by the desire to reduce production costs. Growth pressures and a political culture that favors professional administration over private-regarding politics also are determinants. Franchising decisions are influenced heavily by growth pressures, political impediments to altering the traditional public production arrangements, a political culture that insulates administration from politics, and a desire to keep tax rates down. In other words, franchising decisions are predicated extensively on efforts to limit the scope of government and operate county government according to businesslike principles.
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