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An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil

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  • Luan V. Bernardelli

    (Department of Management and Economics, State University of Paraná, Apucarana 86813-010, Paraná, Brazil)

  • Brian E. Dollery

    (UNE Business School, University of New England, Armidale, NSW 2351, Australia)

  • Michael A. Kortt

    (School of Business and Tourism, Southern Cross University, Coolangatta, QLD 4225, Australia)

Abstract

A substantial empirical study has investigated scale economies in local government functions, most notably in local transportation, water, and wastewater provision. By contrast, relatively little effort has been directed at the empirical analysis of economies of scale in municipal administration, including in Brazilian local government, despite its significance for public policy on structural reform in local government. In order to address this gap in the literature, we investigate administrative scale economies in the Paraná state local government system in Brazil over the period 2006 to 2018. We find that there was a ‘U-shaped’ scale effect between council size by population and administrative intensity after controlling for a range of economic and social variables. Various public policy implications are considered.

Suggested Citation

  • Luan V. Bernardelli & Brian E. Dollery & Michael A. Kortt, 2021. "An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:591-:d:477657
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    References listed on IDEAS

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    5. Michael A. Kortt & Brian Dollery & Joseph Drew, 2016. "Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils," Local Government Studies, Taylor & Francis Journals, vol. 42(2), pages 228-247, March.
    6. Carolyn Tran & Michael Kortt & Brian Dollery, 2019. "Population size or population density? An empirical examination of scale economies in South Australian local government, 2015/16," Local Government Studies, Taylor & Francis Journals, vol. 45(5), pages 632-653, September.
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    Cited by:

    1. Jos L. T. Blank & Thomas K. Niaounakis, 2021. "Economies of Scale and Sustainability in Local Government: A Complex Issue," Sustainability, MDPI, vol. 13(23), pages 1-10, November.

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