IDEAS home Printed from https://ideas.repec.org/a/taf/flgsxx/v42y2016i1p1-14.html
   My bibliography  Save this article

Did the Big Stick Work? An Empirical Assessment of Scale Economies and the Queensland Forced Amalgamation Program

Author

Listed:
  • Joseph Drew
  • Michael A. Kortt
  • Brian Dollery

Abstract

In 2007, the Queensland Government imposed forced amalgamation with the number of local authorities falling from 157 to just 73 councils. Amalgamation was based inter alia on the assumption that increased economies of scale would generate savings. This paper empirically examines pre- and post-amalgamation (2006/07 and 2009/10) for scale economies. For the 2006/07 data, evidence of economies of scale was found for councils with populations up to 98,000, and thereafter diseconomies of scale. Eight percent of councils in 2006/07 (ten councils) – representing 64% of the state’s population – exhibited diseconomies of scale. For the 2009/10 data, the average cost curve remained almost stationary at 99,000 residents per council, but almost 25% of all councils (thirteen councils) were now found to exhibit diseconomies of scale. The compulsory merger program thus increased the proportion of Queensland residents in councils operating with diseconomies of scale to 84%.

Suggested Citation

  • Joseph Drew & Michael A. Kortt & Brian Dollery, 2016. "Did the Big Stick Work? An Empirical Assessment of Scale Economies and the Queensland Forced Amalgamation Program," Local Government Studies, Taylor & Francis Journals, vol. 42(1), pages 1-14, January.
    • Handle: RePEc:taf:flgsxx:v:42:y:2016:i:1:p:1-14
    DOI: 10.1080/03003930.2013.874341
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/03003930.2013.874341
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/03003930.2013.874341?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pérez-López, Gemma & Prior, Diego & Zafra-Gómez, José L., 2018. "Temporal scale efficiency in DEA panel data estimations. An application to the solid waste disposal service in Spain," Omega, Elsevier, vol. 76(C), pages 18-27.
    2. Stefano Manestra & Giovanna Messina & Anna Peta, 2018. "Is there strength in unity? Some preliminary evidence on inter-municipal cooperation in Italy," Questioni di Economia e Finanza (Occasional Papers) 452, Bank of Italy, Economic Research and International Relations Area.
    3. Hiroki Baba & Yasushi Asami, 2020. "Estimating the minimal efficient scale and the effect of intermunicipal cooperation on service provision areas for waste treatment in Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 4(1), pages 139-158, February.
    4. Tavares Antonio F., 2018. "Municipal amalgamations and their effects: a literature review," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 22(1), pages 5-15, March.
    5. Francesca Bartolacci & Rosanna Salvia & Giovanni Quaranta & Luca Salvati, 2022. "Seeking the Optimal Dimension of Local Administrative Units: A Reflection on Urban Concentration and Changes in Municipal Size," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    6. Dollery, Brain & Piper, Donella, 2020. "Council cooperation in New South Wales: Why have some councils not joined joint organisations?," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 125-136.
    7. Dollery, Brian & Drew, Joseph, 2017. "Paying the piper: A critical examination of ACIL Allen’s (2016) An Economic Assessment of Recasting Council Boundaries in South Australia," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 74-82.
    8. Dollery, B.E., 2021. "A critical appraisal of the Western Australian local government review panel’s recommendations," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 434-438.
    9. Gerard Turley & John McDonagh & Stephen McNena & Arkadiusz Grzedzinski, 2018. "Optimum Territorial Reforms in Local Government: An Empirical Analysis of Scale Economies in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 49(4), pages 463-488.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:flgsxx:v:42:y:2016:i:1:p:1-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/flgs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.