Economies of scope in Portuguese local government using an augmented Hicks-Moorsteen approach

Author(s)
Caldas, Paulo
Ferreira, Diogo
Dollery, Brian
Marques, Rui
Publication Date
2019
Abstract
Whereas a substantial empirical literature has investigated scale economies in local government, by contrast little effort has been directed at economies of scope. To address this gap in the literature, this paper empirically examines economies of scope in 308 Portuguese local governments and the extent to which it explains differential council performance. We employ a new methodology using geometric distance functions, an augmented Hicks-Moorsteen index, and partial frontiers for (in)efficiency assessment in local government. The results demonstrate that most councils that 'externalize' service provision face diseconomies of scope, which increase in proportion to the externalization of service provision.
Citation
Regional Studies, 53(7), p. 963-976
ISSN
1360-0591
0034-3404
Link
Language
en
Publisher
Routledge
Title
Economies of scope in Portuguese local government using an augmented Hicks-Moorsteen approach
Type of document
Journal Article
Entity Type
Publication

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