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The Emergence of Inter-Municipal Cooperation – A Hazard Model Approach

Author

Listed:
  • Ivo Bischoff

    (University of Kassel)

  • Eva Wolfschuetz

    (University of Kassel)

Abstract

We use a hazard model to identify the factors that drive the emergence of inter-municipal cooperation (IMC). We focus on IMC in tasks of internal administration in West-Germany between 2001 and 2014 – tasks where IMC may generate economies of scale while regional spillovers are negligible. Our results support the homophily-hypothesis and the relevance of political transaction costs. Municipalities situated in clusters of small and shrinking municipalities are more likely to start IMC. At odds with the previous literature, IMC is more likely to emerge among municipalities in fiscally strong clusters. We find no evidence that IMC is more likely in certain phases of the election cycle while state subsidies for IMC are an important driving force behind IMC.

Suggested Citation

  • Ivo Bischoff & Eva Wolfschuetz, 2017. "The Emergence of Inter-Municipal Cooperation – A Hazard Model Approach," MAGKS Papers on Economics 201744, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201744
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    References listed on IDEAS

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    1. Edoardo Di Porto & Angela Parenti & Sonia Paty & Zineb Abidi, 2017. "Local government cooperation at work: a control function approach," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 435-463.
    2. repec:hrv:faseco:4553034 is not listed on IDEAS
    3. Baskaran, Thushyanthan & Lopes da Fonseca, Mariana, 2016. "Electoral competition and endogenous political institutions: Quasi-experimental evidence from Germany," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 43-61.
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    5. Ivo Bischoff & Stefan Krabel, 2017. "Local taxes and political influence: evidence from locally dominant firms in German municipalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 313-337, April.
    6. Brasington, David M., 1999. "Joint provision of public goods: the consolidation of school districts," Journal of Public Economics, Elsevier, vol. 73(3), pages 373-393, September.
    7. Christian Bergholz & Ivo Bischoff, 2019. "Citizens’ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse," Applied Economics, Taylor & Francis Journals, vol. 51(12), pages 1268-1283, March.
    8. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    9. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(2), pages 91-115, April.
    10. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(2), pages 91-115, June.
    11. Frederic Blaeschke, 2014. "What drives small municipalities to cooperate? Evidence from Hessian municipalities," MAGKS Papers on Economics 201414, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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    Cited by:

    1. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    Inter-municipal cooperation; hazard model; Germany; survey;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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