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Structural reforms during the greek economic adjustment programme: the amalgamation of municipalities

Author

Listed:
  • Massimiliano Ferraresi

    (European Commission, Joint Research Centre (JRC), Ispra, Italy)

  • Maurizio Conti

    (University of Genoa and IZA.)

  • Nikolaos Benos

    (University of Ioannina, Greece)

  • Stelios Karagiannis,

    (European Training Foundation, ETF, Italy.)

  • Michail Papazoglou

    (European Commission, Joint Research Centre (JRC), Ispra, Italy)

Abstract

Amalgamation reforms have been extensively implemented in several countries as policy instruments to improve local government service provision and reduce costs based on scale economies. However, their effectiveness has proved ambiguous in practice. We investigate the impact of a substantial large-scale amalgamation that took place in Greek municipalities in 2010, and its effect on per-capita current costs and investments. Using data for the 2005-2018 period, we find very weak evidence of the reform on current costs, while the amalgamation of municipalities is associated with a significant decrease in per capita investment around 31%. This effect is robust, persistent, and associated with a substantial decline in GDP per capita of about 13% over the sample period.

Suggested Citation

  • Massimiliano Ferraresi & Maurizio Conti & Nikolaos Benos & Stelios Karagiannis, & Michail Papazoglou, 2022. "Structural reforms during the greek economic adjustment programme: the amalgamation of municipalities," Working papers 109, Società Italiana di Economia Pubblica.
    • Handle: RePEc:ipu:wpaper:109
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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