Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/31363
Title: Brazilian Municipal Expenditure and Scale Economies: Evidence from São Paulo
Contributor(s): Bernardelli, Luan V (author); Kortt, Michael A (author); Dollery, Brian  (author)
Publication Date: 2021
DOI: 10.37808/paq.45.2.3
Handle Link: https://hdl.handle.net/1959.11/31363
Abstract: Advocates of municipal mergers usually claim that considerable economies of scale flow from council consolidations, which result in larger local government organizations. We examined whether scale economies are present in municipal outlays by investigating the expenditure of 644 São Paulo municipal areas using data over the period 2005 to 2017. We find evidence that considerable scale economies characterize municipal expenditure in São Paulo. However, given that population size and population density are positively correlated, it is critical to determine whether or not the influence of population on municipal expenditure arises because of disparities in density. We find that when São Paulo municipalities are decomposed into sub-categories based on different population densities, evidence in favour of scale economies persists. Thus, municipal mergers in the state of São Paulo may result in lower per capita expenditure.
Publication Type: Journal Article
Source of Publication: Public Administration Quarterly, 45(2), p. 166-187
Publisher: Southern Public Administration Education Foundation, Inc
Place of Publication: United States of America
ISSN: 2327-4433
0734-9149
Fields of Research (FoR) 2008: 140214 Public Economics- Publically Provided Goods
Fields of Research (FoR) 2020: 380114 Public economics - publicly provided goods
Socio-Economic Objective (SEO) 2008: 940204 Public Services Policy Advice and Analysis
Socio-Economic Objective (SEO) 2020: 230204 Public services policy advice and analysis
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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