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Economies of Scale in Fire and Police Services in Ontario

Author

Listed:
  • Adam Found

    (University of Toronto)

Abstract

This paper analyzes economies of scale for two municipal services by considering how per-household municipal costs are affected by a municipality’s size. An econometric model is used to estimate costs associated with fire and police services using data for 445 municipalities in the Province of Ontario. The results show that the costs per household of fire services are minimized for municipalities with a population of about 20,000 residents. For police services, costs are minimized with a population of about 50,000 residents. Based on these results, implications are drawn for municipal amalgamation policy.

Suggested Citation

  • Adam Found, 2012. "Economies of Scale in Fire and Police Services in Ontario," IMFG Papers 12, University of Toronto, Institute on Municipal Finance and Governance.
    • Handle: RePEc:mfg:wpaper:12
    as

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    File URL: https://tspace.library.utoronto.ca/bitstream/1807/81256/1/imfg_paper_12_Found_%202012-12-03.pdf
    File Function: First version, 2012
    Download Restriction: no
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    Citations

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    Cited by:

    1. Michael Fenn & André Côté, 2014. "Provincial-Municipal Relations in Ontario: Approaching an Inflection Point," IMFG Papers 17, University of Toronto, Institute on Municipal Finance and Governance.
    2. Benjamin Dachis, 2018. "Fiscal Soundness and Economic Growth: An Economic Program for Ontario," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 505, March.
    3. Peter Abelson, 2016. "The Optimal Size of Local Government, with Special Reference to New South Wales," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 23(1), pages 31-46.
    4. Jinghua Lei & Jenny Ligthart & Mark Rider & Ruixin Wang, 2022. "Fiscal fragmentation and crime control: Is there an efficiency-equity tradeoff?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(3), pages 751-787, June.
    5. Vining, Aidan R. & Richards, John, 2016. "Indigenous economic development in Canada: Confronting principal-agent and principal–principal problems to reduce resource rent dissipation," Resources Policy, Elsevier, vol. 49(C), pages 358-367.

    More about this item

    Keywords

    municipal finance; police services; fire services; economies of scale;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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