The Impact of Intermunicipal Cooperation on Local Public Spending

Quentin Frère, Matthieu Leprince () and Sonia Paty
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Quentin Frère: CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement

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Abstract: The purpose of this paper is to assess the effects of intermunicipal fiscal cooperation on municipal public spending, based on the French experience. A model of municipal spending choice is estimated using panel data and spatial econometrics for municipalities over the period 1994-2003. Two main results are provided. First, intermunicipal cooperation has no significant impact on the level of municipal public spending, which suggests that cooperation does not achieve its goal of reducing municipal spending by the sharing of local responsibilities. Second, there are no spending interactions between municipalities belonging to the same intermunicipal community. This is in line with the goal assigned to cooperation in terms of internalisation of spatial externalities. However, the results show that benefit spillovers remain highly significant outside intermunicipal communities.

Keywords: public spending; inter-municipal cooperation; panel data; local governments (search for similar items in EconPapers)
Date: 2014
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00862778v1
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Citations: View citations in EconPapers (32)

Published in European Urban and Regional Studies, 2014, 51 (8), pp.1741-1760. ⟨10.1177/0042098013499080⟩

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Related works:
Journal Article: The Impact of Intermunicipal Cooperation on Local Public Spending (2014)
Working Paper: The impact of inter-municipal cooperation on local public spending (2013)
Working Paper: The impact of inter-municipal cooperation on local public spending? (2012)
Working Paper: The impact of inter-municipal cooperation on local public spending (2012)
Working Paper: The impact of inter-municipal cooperation on local public spending (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00862778

DOI: 10.1177/0042098013499080

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