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Government vs Private
In 2012 or so, our city government had discovered that a certain kind of trees that it recommended planting 25 years ago was prone to sudden collapse (or whatever they call it when a tree suddenly falls down for no apparent reason). After a couple of years of public hearings, the city approved a plan to take down all such trees at no cost to property owners. The property owners had two options: a) hire a private company to get rid of a tree and then claim reimbursement from the government; b) submit a request to the city arborist and wait until the city takes care of the offending tree themselves.
As a result, we have a natural experiment about relative efficiency of tree services provided by the government and private companies. The numbers will be hard to come by because, due to the reimbursement policy, dollar costs will be the same. Anecdotally, I can see a significant difference in execution.
When a private company takes down a tree they use a 3-person team: one worker to chop down the tree, another guy to throw pieces into the grinder, and one more to direct the traffic around the work zone.
When the government does the same job, they use a 5-person team and an additional piece of equipment - a specialized truck with a lift.
One hypothesis would be that the government is less efficient in doing the same job.
Another hypothesis would be that for certain complex jobs private companies quote high prices and property owners choose to engage the city rather than going through the reimbursement hassle.
As a result, we have a natural experiment about relative efficiency of tree services provided by the government and private companies. The numbers will be hard to come by because, due to the reimbursement policy, dollar costs will be the same. Anecdotally, I can see a significant difference in execution.
When a private company takes down a tree they use a 3-person team: one worker to chop down the tree, another guy to throw pieces into the grinder, and one more to direct the traffic around the work zone.
When the government does the same job, they use a 5-person team and an additional piece of equipment - a specialized truck with a lift.
One hypothesis would be that the government is less efficient in doing the same job.
Another hypothesis would be that for certain complex jobs private companies quote high prices and property owners choose to engage the city rather than going through the reimbursement hassle.