Work

Borrowing Size and Functions From Nearby Cities: The Mediating Role of Inter‐Municipal Cooperation

Year: 2026

Type: article

Abstract: ABSTRACT This paper first analyzes whether the efficiency of smaller municipalities is associated with the agglomeration advantages of their larger neighbors through “borrowed size” and “borrowed functions” mechanisms. Second, it explores the role of inter‐municipal cooperation (IMC) in these mechanisms. Based on a data set of 29,873 French municipalities over the period 2016–2018, we use stochastic frontier analysis to estimate a measure of municipal spending efficiency and investigate how it is affected by borrowing size/functions. Our findings show that smaller municipalities are associated with efficiency gains from the agglomeration perks of their neighbors, regardless of the IMC, as expected. However, larger municipalities within an IMC group are those most strongly associated with borrowing functions from their smaller neighbors, casting a shadow over their performance.

Source: Journal of Regional Science

DOI: 10.1111/jors.70103

Authors: Juan Piedra‐Peña, Marie‐Laure Breuillé, Julie Le Gallo

Institutions: Universidad de Oviedo, Institut National de Recherche pour l'Agriculture, l'Alimentation et l'Environnement, Université Bourgogne Franche-Comté, Centre d'économie et de sociologie appliquées à l'agriculture et aux espaces ruraux

Language: English

Topic: Local Government Finance and Decentralization

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,730

Funder: Ministerio de Ciencia e Innovación