The Impact of Corruption and Accountability on Refuse Collection Costs

This paper explores the link between accountability, corruption and efficiency in the context of the provision of a local public service. Using data on solid waste management services provided by a large sample of Italian municipalities, we estimate a stochastic cost frontier model and provide robust evidence that high corruption levels and low degrees of accountability substantially increase cost inefficiency. Finally, we show that the negative impact of corruption is weaker for municipalities ruled by left-wing parties, while the positive impact of accountability is stronger if the refuse collection service is managed by limited liability companies.