Herausgeber:
Liechtenstein Politische Schriften
Bandzählung:
35
Erscheinungsjahr:
2003
PURL:
https://www.eliechtensteinensia.li/viewer/object/000077483/88/
differences between VSC and larger countries are expected to be most pronounced. Hypothesis 1 states the theoretical expectation based on Table 
4.3: Hypothesis 1:Given very high or high costs of in-house production of a public good in a VSC, the government is expected to out source production under conditions (1) and (2). Condition 1: The cost difference between in-house production or provision and international outsourcing is high, and interna- tional outsourcing is the less expensive option. Condition 2: Preference homogeneity between the VSC and, if the characteristics of the public good requires that, at least one adjacent country is sufficiently high.80 Hypothesis 1 is tested for a set of public goods in 21 selected VSC. Strictly speaking, we test whether the production or provision of those goods which exhibit high economies of scale and therefore high costs is 88 
Very small countries: organizational choice and international outsourcing 80For some public goods, adjacency is irrelevant, as in the case of currencies. A VSC can introduce any currency it wants without relying on the currencies of adjacent countries. 
Table 4.3: Public goods with high costs and high economies of scale, when produced in-house in VSC Public goodCosts inPublic goodCosts in FPUBLFPUBL «very high» costs:«high» costs: legislative branchimplausiblegeneral administrationimplausible executive branchimplausiblesecondary educationlow courts and judicial branchimplausiblehigher educationlow foreign policyvery lowgeneral health careimplausible legal systemvery lowhospitalslow defensevery lowsocial securitylow monetary systemvery lowhighwayslow railway infrastructurelow ports and airportslow tax levylow
        

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