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An Evaluation of the Financial Sustainability of Remote Australian Local Councils

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  • Caillan Fellows
  • Brian Dollery
  • Rui Marques

Abstract

Spatial remoteness in the sense of great distances between population centres and limited access to public services is an on‐going problem in Australian local government, where there exist large, sparsely populated regions dominated by the 'tyranny of distance'. From a public policy perspective, it is important to understand the impact of remoteness on local authorities. Accordingly, in this paper, we estimate the relationship between remoteness and financial sustainability using a 2014–2018 sample of Australian local governments. In general, we find only limited empirical evidence for a relationship between geographical remoteness and financial sustainability as we have proxied it.

Suggested Citation

  • Caillan Fellows & Brian Dollery & Rui Marques, 2022. "An Evaluation of the Financial Sustainability of Remote Australian Local Councils," Economic Papers, The Economic Society of Australia, vol. 41(2), pages 110-127, June.
    • Handle: RePEc:bla:econpa:v:41:y:2022:i:2:p:110-127
    DOI: 10.1111/1759-3441.12334
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    References listed on IDEAS

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    1. Germà Bel, 2013. "Local government size and efficiency in capital-intensive services: what evidence is there of economies of scale, density and scope?," Chapters, in: Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), The Challenge of Local Government Size, chapter 6, pages 148-170, Edward Elgar Publishing.
    2. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    3. Elisabeth Sinnewe & Michael A. Kortt & Brian Dollery & Philip Hayward, 2015. "Three of a Kind? The Special Case of Australia's Island Councils," Economic Papers, The Economic Society of Australia, vol. 34(3), pages 150-164, September.
    4. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, June.
    5. Neil Warren, 2013. "National fiscal consolidation and the challenge to Australian federalism," The Economic and Labour Relations Review, , vol. 24(2), pages 161-180, June.
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