Efficient municipal consolidation and local public spending: a theoretical approach

Akiyoshi Furukawa

Applied Economics Letters, 2022, vol. 29, issue 8, 746-749

Abstract: This paper analyses whether municipal consolidation decreases local public spending, using the local public goods model. First, the conditions under which municipal consolidation achieves efficient allocation are shown. Then, this paper shows that one effect of municipal consolidation is to expand local public services and not to reduce local public expenditure.

Date: 2022
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DOI: 10.1080/13504851.2021.1884836

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