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The political economy of municipal consortia and municipal mergers

Author

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  • Giuseppe Liddo

    (University of Bari “A. Moro”)

  • Michele G. Giuranno

    (University of Salento)

Abstract

This paper analyses both the policy and welfare consequences of municipal mergers vs municipal consortia in the presence of spillovers and inequalities in the districts size. Citizens of different municipalities have a common interest in internalising spillovers, but conflicting interests on how to reach that goal. We address the question of when, from a welfare point of view, the central government should legislate in favour of municipal mergers and when, instead, it should prefer municipal consortia. Results provide some useful insights for the design of local governments reforms.

Suggested Citation

  • Giuseppe Liddo & Michele G. Giuranno, 2020. "The political economy of municipal consortia and municipal mergers," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 105-135, April.
    • Handle: RePEc:spr:epolit:v:37:y:2020:i:1:d:10.1007_s40888-019-00169-1
    DOI: 10.1007/s40888-019-00169-1
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    Cited by:

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    2. Adolfo Maza & María Hierro, 2022. "Attempting to measure the intensity of opposing feelings in elections: A polarization approach to Catalonia’s independence case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 323-344, July.

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    More about this item

    Keywords

    Municipal amalgamation; Municipal cooperation; Centralization; Bargaining;
    All these keywords.

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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