Patterns of Cost Allocation Strategies: A Look at Cooperative Fire Departments in the State of Michigan

Nicole Bradshaw

No 7428, Graduate Research Master's Degree Plan B Papers from Michigan State University, Department of Agricultural, Food, and Resource Economics

Abstract: Intergovernmental cooperation is an important topic in Michigan's current economic climate and has received a lot of treatment by researchers. However, very few studies have been conducted regarding cost sharing agreements made by cooperating groups, especially in the realm of fire service. This study identifies common cost allocation mechanisms and develops a conceptual framework that predicts prevalent patterns between low transaction cost sharing arrangements and similarities among involved communities. Other theories are presented regarding patterns with expenditures and other budgetary data. Patterns were identified using two-step cluster analysis in SPSS. Three tests were done uncovering several variables significant in determining clusters. Among these variables were cost allocation choice, total expenditures, number participating municipalities per fire district, median home value, and percent white population. There were several limitations to this study, including a small number of observations and limited variables.

Keywords: Public; Economics (search for similar items in EconPapers)
Pages: 56
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:midagr:7428

DOI: 10.22004/ag.econ.7428

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