Across the developed world, last 50 years have seen a dramatic wave of municipal mergers, often motivated by quest for economies scale. Re-examining theoretical arguments invoked to justify these reforms, we find that, in fact, there is no compelling reason expect them yield net gains. Potential savings in, example, administrative costs are likely be offset opposite effects other domains. Past attempts at empirical assessment been bedeviled endogeneity—which municipalities amalgamate...

The search for the optimal size of political systems is one most enduring in thought. Given validity arguments and against small units, might expect variation rearrangements unit sizes. However, reform trend uniform: often at local level, are amalgamated to harvest scale effects. purpose this article evaluate argument on economies economic costs running systems. Our testing ground a recent Danish reform. It allows us avoid endogeneity problems facing researchers reforms. was directed by...

Abstract Governments face a fundamental choice between in‐house production and contracting out for the delivery of services to citizens. This article examines importance ideology, fiscal pressure, size in technical social services. The analysis builds on panel data set covering municipal spending all 98 Danish municipalities. authors find that is shaped by ideology but not services, which indicates are contemporary ideological battlefield privatization. further reveals economically...

Improved fiscal management is a frequent justification for promoting boundary consolidations. However, whether or not this actually the case rarely placed under rigorous empirical scrutiny. Hence, article investigates if outcomes are improved when municipalities merged. The basic argument that conceptualisation of in political science often too narrow as it focuses on budget and pays hardly any attention to balances final accounts debts – elements which central policy making. On background,...

Why are some countries able to go ahead with comprehensive top-down local government amalgamation reforms, despite the many challenges such a reform entails? So far, we have limited theoretical and empirical understanding of how central governments manage adopt reforms. Drawing on different frameworks around public policy as well research into territorial this article presents key political institutional factors that likely facilitate municipal mergers examines whether these propositions...

It is becoming difficult to maintain consensus in a period of economic austerity, and this possibly challenges the ability democratic institutions take decisions on tough questions. In order find out how political influences fiscal outcomes, article sets analyse association between public expenditure growth. The results show that positively associated with both budgeted actual growth, but also negatively budget overruns. This indicates comes at cost, while same time politicians may be better...

This article investigates whether the fiscal environment that politicians face influences their use of performance information. It poses two competing hypotheses, suggesting austerity either increases politicians' information, because they are more concerned about keeping up good in times austerity, or decreases use, balancing books is vital and therefore within budget gains political emphasis relative to sustaining performance. The link between information tested using survey documentary...

Abstract The optimal jurisdiction size has been debated since Plato and Aristotle. A large literature studied economic democratic scale effects, but we have almost no knowledge of the effects on effectiveness local services. This is due to two methodological problems. First, selection bias reverse causality often render change in an endogenous variable. Second, there a lack empirical indicators effectiveness, most studies therefore focus spending measures. Extant research thus economies...

Abstract Administrative burdens are widespread and likely to generate unequal opportunities in access government programs other important entitlements. Whereas a large body of research has examined administrative citizen‐state encounters, little is known either theoretically or empirically about business–government interactions. In this article, we argue that private businesses, just like individual citizens, experience encounters with the government, these result bureaucratic procedures as...

Abstract Much research following Kaufman’s classic study Are Government Organizations Immortal? has investigated the claim that government agencies enjoy great security and long life. Less attention been paid to thesis facing a termination threat have strong incentives react. In of on-going Norwegian local amalgamation reform, we demonstrate this type agency reacts by hoarding (i.e., last-minute flurry spending) when faced with threat. This finding shows threats are active players in game....

Abstract Government outsourcing to third-party vendors is widespread and intended strengthen the organizational incentive deliver public services more efficiently. However, it unclear how influences workforce, little known about effect on employees who change from working for government vendor receiving contract. In this article, we theoretically argue that introduction of competition private ownership in service delivery may have negative consequences employees’ remuneration, employment,...

The economic rationale for contracting out local services is increasingly contested by empirical research. This article aims to contribute this literature, first scrutinising the effects of in road and park and, second, exploring how characteristics such as markets, contracts, municipal strategies history influence these outcomes. Drawing on original survey data from Danish municipalities, we find that competitive tendering has average reduced costs. Further analysis shows savings are not...

Governments’ endeavours to improve the efficiency of public service delivery often involve contracting out external providers, which, allegedly, provides possibility exploiting innovative capacity and expertise private market. However, most previous studies have focused on economic effects, thereby leaving open question whether results in mere cost savings or real gains. This article offers some insights advance debate. Using municipal road maintenance Denmark as an empirical test bed, we...

Local government amalgamation reforms are politically demanding ventures because potential benefits often diffuse and long term, while costs concentrated immediate. We investigate the role of national political actors in forming alliances choosing policy tools such reform contexts. Empirically, we compare Danish reform, characterised by use authoritative a nationally directed process, Norwegian which primarily used softer that involved substantial autonomy at local level. Our analysis is...

Traditionally, benefit-cost analyses focus on average benefits and costs. However, heterogeneous treatment effects and/or costs are most often present, which means that there is an efficiency potential hidden in the implementation of public programs, if policies can be targeted at those who, net costs, benefit most. We introduce defined as ratio between achieved under perfect selection individuals with significant positive program participation, actually realized Using data from a randomized...

This article investigates politicians’ preferences for cutting and spending. The research questions are where do politicians prefer to cut, they spend how is this influenced by political ideology? These investigated in a large-scale survey experiment fielded Danish local councillors, who randomly assigned decision-making situation, the block grant provided their municipality either increased or reduced. results show that spending asymmetric, sense policy areas, which least cuts when reduced,...