An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil

Luan V. Bernardelli, Brian Dollery () and Michael A. Kortt
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Luan V. Bernardelli: Department of Management and Economics, State University of Paraná, Apucarana 86813-010, Paraná, Brazil
Michael A. Kortt: School of Business and Tourism, Southern Cross University, Coolangatta, QLD 4225, Australia

Sustainability, 2021, vol. 13, issue 2, 1-13

Abstract: A substantial empirical study has investigated scale economies in local government functions, most notably in local transportation, water, and wastewater provision. By contrast, relatively little effort has been directed at the empirical analysis of economies of scale in municipal administration, including in Brazilian local government, despite its significance for public policy on structural reform in local government. In order to address this gap in the literature, we investigate administrative scale economies in the Paraná state local government system in Brazil over the period 2006 to 2018. We find that there was a ‘U-shaped’ scale effect between council size by population and administrative intensity after controlling for a range of economic and social variables. Various public policy implications are considered.

Keywords: administrative intensity; Brazil; economies of scale; local government; Paraná; optimal municipal size (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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