Beyond the market versus planning dichotomy: Understanding privatisation and its reverse in US cities

City service delivery requires planners and city managers to move beyond the public-private dichotomy and explore the benefits of interaction between markets and planning. Using International City County Management survey data on US local governments from 1992, 1997 and 2002, we find a shift where reverse contracting (re-internalisation) now exceeds the level of new contracting out (privatisation). We model how a theoretical shift from new public management to new public service in public administration mirrors a behavioural shift among city managers. Results confirm the need to balance economic concerns with political engagement of citizens and lend empirical support to a theory of social choice that links communicative planning with market management.