Fiscal outcomes arising from amalgamation: more complex than merely economies of scale

Author(s)
Drew, Joseph
McQuestin, Dana
Dollery, Brian
Publication Date
2023
Abstract
<p>Local government amalgamations are often prosecuted on the basis of expected efficiencies centred on capturing economies of scale. However, these economies are far from certain or straightforward. This paper draws on the extant literature to first develop a comprehensive picture of the complexity of the fiscal outcomes associated with amalgamation. We then take advantage of an eight-year panel of data and a serendipitous natural experiment to better understand the impact of amalgamation on operating unit costs. Our results confirm that the actual operating cost outcomes of amalgamation were indeed at odds with the expectations of the amalgamation architects.</p>
Citation
Public Management Review, p. 1-19
ISSN
1471-9045
1471-9037
Link
Language
en
Publisher
Routledge
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International
Title
Fiscal outcomes arising from amalgamation: more complex than merely economies of scale
Type of document
Journal Article
Entity Type
Publication

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