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Title: No Aladdin's Cave in New South Wales?: Local Government Amalgamation, Scale Economies, and Data Envelopment Analysis Specification
Contributor(s): Drew, Joseph  (author)orcid ; Kortt, Michael A  (author); Dollery, Brian E  (author)
Publication Date: 2017
DOI: 10.1177/0095399715581045
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Abstract: Local government structural reform programs are often based on the purported benefits of increased scale. We examine this question in relation to the proposed amalgamation program for New South Wales (NSW) by the NSW Independent Local Government Review Panel using Data Envelopment Analysis (DEA). We find evidence that a significant proportion of municipalities scheduled for amalgamation already exceed optimal scale and that the great majority of "amalgamated" entities will initially exhibit decreasing returns to scale. Our findings thus stand in stark contrast to the Independent Local Government Review Panel (ILGRP) contention that municipal mergers are the optimal approach to capturing economies of scale in NSW local government.
Publication Type: Journal Article
Source of Publication: Administration & Society, 49(10), p. 1450-1470
Publisher: Sage Publications Inc
Place of Publication: United States of America
ISSN: 1552-3039
Field of Research (FOR): 160509 Public Administration
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
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Appears in Collections:Journal Article
UNE Business School

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