Work

Fiscal outcomes arising from amalgamation: more complex than merely economies of scale

Year: 2023

Type: article

Abstract: Local government amalgamations are often prosecuted on the basis of expected efficiencies centred on capturing economies of scale.However, these economies are far from certain or straightforward.This paper draws on the extant literature to first develop a comprehensive picture of the complexity of the fiscal outcomes associated with amalgamation.We then take advantage of an eight-year panel of data and a serendipitous natural experiment to better understand the impact of amalgamation on operating unit costs.Our results confirm that the actual operating cost outcomes of amalgamation were indeed at odds with the expectations of the amalgamation architects.

Source: Public Management Review

DOI: 10.1080/14719037.2023.2174586

Authors: Joseph Drew, Dana McQuestin, Brian Dollery

Institutions: Seoul National University, Tokyo Metropolitan University, University of Newcastle Australia, Newcastle University, University of New England, University of New England

Language: English

Topic: Local Government Finance and Decentralization

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

OpenAlex ID: W4319790544

FWCI: 10.86

Cites: 23

Cited by: 11

Related to: 10