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Intermunicipal cooperation, public spending and service levels

Author

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  • Maarten A. Allers
  • J.A. de Greef

Abstract

Local governments can increase size in particular policy fields through cooperation with other local governments. This is often thought to improve efficiency, but there is little empirical evidence supporting this hypothesis. We study the case of the Netherlands, which has been a veritable laboratory of intermunicipal cooperation (IMC), using panel data for 2005–2013. We find no evidence that IMC reduces total spending of the average municipality. Indeed, IMC seems to increase spending in small and large municipalities, leaving spending in mid-sized municipalities unaffected. In one specific field, tax collection, spending may be reduced through IMC. Spending in this field is low, which may explain why total spending is unaffected. Instead of lowering spending, municipalities may have used possible cost savings as a result of IMC to improve public service levels. We do not find evidence substantiating this hypothesis, however.

Suggested Citation

  • Maarten A. Allers & J.A. de Greef, 2018. "Intermunicipal cooperation, public spending and service levels," Local Government Studies, Taylor & Francis Journals, vol. 44(1), pages 127-150, January.
    • Handle: RePEc:taf:flgsxx:v:44:y:2018:i:1:p:127-150
    DOI: 10.1080/03003930.2017.1380630
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    Cited by:

    1. Silvestre, Hugo Consciência & Marques, Rui Cunha & Dollery, Brian & Correia, Aldenisio Moraes, 2022. "Regional consortia and transaction costs for sanitation services in Brazil," Utilities Policy, Elsevier, vol. 78(C).
    2. Mark Davidson & Kevin Ward, 2022. "Post-great recession municipal budgeting and governance: A mixed methods analysis of budget stress and reform," Environment and Planning A, , vol. 54(4), pages 634-652, June.
    3. Notsu, Naruki, 2024. "Inter-municipal cooperation cloud and tax administrative costs," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    4. 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.
    5. Sonia Paty & Morgan Ubeda, 2021. "Inter-municipal cooperation and the provision of local public goods," Working Papers 2121, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    6. Clémence Tricaud, 2019. "Better alone? Evidence on the costs of intermunicipal cooperation," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2019-12-ccr, Condorcet Center for political Economy.
    7. 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.
    8. repec:hal:journl:hal-03380333 is not listed on IDEAS
    9. Giuseppe Gori & Patrizia Lattarulo & Francesco Porcelli & Leonzio Rizzo & Riccardo Secomandi, 2023. "Does inter-municipal cooperation increase efficiency? Evidence from Italy," Working papers 111, Società Italiana di Economia Pubblica.
    10. Pietro Previtali & Eugenio Salvati, 2021. "Area Social Plans and Local Governance of Interorganizational Collaborations," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    11. Anna Francesca Pattaro & Marco Ranuzzini & Luca Bonacini, 2019. "Inter-municipal cooperation as a solution for public services delivery? The case of Unioni di Comuni in Emilia-Romagna Region," Department of Economics 0144, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    12. A. Georges L. Romme & Harry van de Loo & Ben Dankbaar, 2022. "How to Control Civil Servants: Designing and Testing a Solution Informed by Game Theory," Administrative Sciences, MDPI, vol. 12(2), pages 1-17, April.
    13. Quentin Frère & Lionel Védrine, 2024. "Does decentralisation theorem shape intermunicipal cooperation?," Post-Print hal-04739942, HAL.
    14. Marian Kachniarz & Zbigniew Piepiora, 2019. "The Effectiveness of Administrative Consolidation Processes in Urban Functional Areas. Case Studies from Poland and the USA," Proceedings of the 14th International RAIS Conference, August 19-20, 2019 007MK, Research Association for Interdisciplinary Studies.
    15. Marco Di Cataldo & Licia Ferranna & Margherita Gerolimetto & Stefano Magrini, 2023. "Splitting Up or Dancing Together? Local Institutional Structure and the Performance of Urban Areas," Economic Geography, Taylor & Francis Journals, vol. 99(1), pages 81-110, January.
    16. Naruki Notsu & Haruaki Hirota & Nobuo Akai, 2024. "Inter-municipal cooperation and tax enforcement capabilities," OSIPP Discussion Paper 24E004, Osaka School of International Public Policy, Osaka University.
    17. Antonio Massarutto, 2019. "Italian waste in the circular economy: A agenda for industry regulators in Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(1), pages 9-48.

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