The Emergence of Inter-Municipal Cooperation – A Hazard Model Approach

Ivo Bischoff () and Eva Wolfschuetz ()
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Eva Wolfschuetz: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: We use a hazard model to identify the factors that drive the emergence of inter-municipal cooperation (IMC). We focus on IMC in tasks of internal administration in West-Germany between 2001 and 2014 – tasks where IMC may generate economies of scale while regional spillovers are negligible. Our results support the homophily-hypothesis and the relevance of political transaction costs. Municipalities situated in clusters of small and shrinking municipalities are more likely to start IMC. At odds with the previous literature, IMC is more likely to emerge among municipalities in fiscally strong clusters. We find no evidence that IMC is more likely in certain phases of the election cycle while state subsidies for IMC are an important driving force behind IMC.

Keywords: Inter-municipal cooperation; hazard model; Germany; survey (search for similar items in EconPapers)
JEL-codes: D72 H77 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017
New Economics Papers: this item is included in nep-cdm, nep-cta and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201744

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