Is Bigger More Efficient? An Empirical Analysis of Scale Economies in Administration in South Australian Local Government

Title
Is Bigger More Efficient? An Empirical Analysis of Scale Economies in Administration in South Australian Local Government
Publication Date
2022-03
Author(s)
Fellows, Caillan
Dollery, Brian
Tran, Carolyn-Thi Thanh Dung
( author )
OrcID: https://orcid.org/0000-0002-5798-0543
Email: ttran43@une.edu.au
UNE Id une-id:ttran43
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
John Wiley and Sons, Inc
Place of publication
Australia
DOI
10.1111/1759-3441.12327
UNE publication id
une:1959.11/71786
Abstract

A vast empirical literature has investigated economies of scale in municipal operations, especially in water and wastewater provision as well as domestic waste management. By contrast, comparatively few studies have been conducted on the extent of scale economies in local government administration. Given the stress placed on scale economies in Australian state and territory government policies aimed at the structural reform of local government through municipal mergers, including in South Australian (SA) local government, the absence of empirical research into administrative scale economies is unfortunate. To address this gap in the empirical literature, in this paper, we consider administrative scale economies in the SA local government system using four-year panel data from 2015–2016 to 2018–2019. We find limited evidence for a relationship between administrative intensity and municipal by population size and for a difference between the administrative intensity of urban and rural councils.

Link
Citation
Economic Papers: a journal of applied economics and policy, 41(1), p. 54-67
ISSN
1759-3441
0812-0439
Start page
54
End page
67

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