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Consolidated city–county governments and economic stability

Author

Listed:
  • Josh Matti

    (Georgia Gwinnett College)

  • Amir B. Ferreira Neto

    (Florida Gulf Coast University)

Abstract

With economic development as a primary aim of city–county consolidations, a theoretical and empirical literature explores the effect of consolidation on economic conditions. However, despite the economic development effects arguably being most relevant during economic crisis, no studies have focused on consolidation’s effects during recession. Using county-level data from 13 states across the United States, we consider how consolidation influences economic stability during and after the Great Recession. After controlling for demographic, economic, and geographic factors, including potential spillover effects, the results suggest that consolidation does not promote stability for either employment, the unemployment rate, per capita income, or number of business establishments. These null effects are not influenced by government sector employment or driven by results from any particular state. The paper’s findings caution against local governments pursuing city–county consolidation in hopes of greater economic stability.

Suggested Citation

  • Josh Matti & Amir B. Ferreira Neto, 2023. "Consolidated city–county governments and economic stability," Economics of Governance, Springer, vol. 24(3), pages 263-286, September.
    • Handle: RePEc:spr:ecogov:v:24:y:2023:i:3:d:10.1007_s10101-022-00273-2
    DOI: 10.1007/s10101-022-00273-2
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    References listed on IDEAS

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    More about this item

    Keywords

    City–county consolidation; Local governments; Stability;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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