Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/26275
Title: Do Municipal Mergers Improve Technical Efficiency? An Empirical Analysis of the 2008 Queensland Municipal Merger Program
Contributor(s): McQuestin, Dana (author)orcid ; Drew, Joseph (author)orcid ; Dollery, Brian (author)
Publication Date: 2018
Open Access: Yes
DOI: 10.1111/1467-8500.12286
Handle Link: https://hdl.handle.net/1959.11/26275
Abstract: Municipal mergers remain an important instrument of local government policy in numerous countries, including Australia, despite some concerns surrounding its efficacy. We consider the claim that amalgamations enhance the technical efficiency of the merged entities by examining the 2008 Queensland compulsory consolidation program that reduced the number of local authorities from 157 to 73 councils. To test the claim, we conduct locally inter-temporal data envelopment analysis over the period 2003-2013 inclusive. Our evidence suggests that (1) in the financial year preceding the mergers, there was no statistically significant difference in the typical efficiency scores of amalgamated and non-amalgamated councils and (2) 2 years following the mergers, the typical technical efficiency score of the amalgamated councils was well below the non-amalgamated cohort. We argue this may be attributed to increased spending on staffing expenses, although comparatively larger operational expenditure also served to diminish efficiency.
Publication Type: Journal Article
Source of Publication: Australian Journal of Public Administration, 77(3), p. 442-455
Publisher: Wiley-Blackwell Publishing Asia
Place of Publication: Australia
ISSN: 0313-6647
1467-8500
Field of Research (FOR): 160509 Public Administration
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
Appears in Collections:Journal Article
UNE Business School

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