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Cooperation, not cost savings: explaining duration of shared service agreements

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  • Austin M. Aldag
  • Mildred Warner

Abstract

Among local governments, inter-municipal cooperation is the growing reform; but the literature is silent regarding the determinants of longer-term shared service agreements. We conducted a survey of all local governments in New York State in 2013 to assess the level of sharing across 29 public services. The duration of shared service agreements varies from 1 to 80 years. What explains this difference? Our hierarchical linear model shows that service sharing agreements fall along a cooperation continuum, where cost savings are a determinant of shorter agreements, while the public values of service quality and cross-jurisdictional coordination explain longer-term agreements. We also find that positive past experience with sharing partners increases the duration of sharing agreements. Our analysis lays the foundation for new theories of shared services that build directly from the benefits of improved regional coordination, inter-municipal reciprocity and service quality, not from theories based solely on competition and costs.

Suggested Citation

  • Austin M. Aldag & Mildred Warner, 2018. "Cooperation, not cost savings: explaining duration of shared service agreements," Local Government Studies, Taylor & Francis Journals, vol. 44(3), pages 350-370, May.
    • Handle: RePEc:taf:flgsxx:v:44:y:2018:i:3:p:350-370
    DOI: 10.1080/03003930.2017.1411810
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    Cited by:

    1. Silvestre, Hugo Consciência & Marques, Rui Cunha & Dollery, Brian & Correia, Aldenisio Moraes, 2022. "Regional consortia and transaction costs for sanitation services in Brazil," Utilities Policy, Elsevier, vol. 78(C).
    2. Arntsen, Bjørnulf & Torjesen, Dag Olaf & Karlsen, Tor-Ivar, 2021. "Asymmetry in inter-municipal cooperation in health services – How does it affect service quality and autonomy?," Social Science & Medicine, Elsevier, vol. 273(C).
    3. Mark Davidson & Kevin Ward, 2022. "Post-great recession municipal budgeting and governance: A mixed methods analysis of budget stress and reform," Environment and Planning A, , vol. 54(4), pages 634-652, June.
    4. Germà Bel & Thomas Elston, 2022. ""When the Time is Right: Testing for Dynamic Effects in Collaborative Performance"," IREA Working Papers 202212, University of Barcelona, Research Institute of Applied Economics, revised Jul 2022.
    5. Anna Francesca Pattaro & Marco Ranuzzini & Luca Bonacini, 2019. "Inter-municipal cooperation as a solution for public services delivery? The case of Unioni di Comuni in Emilia-Romagna Region," Department of Economics 0144, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    6. José Sánchez & Haifeng Qian, 2024. "Come Together, But How? Zooming Into Economic Development Collaboration Between State and Local Governments, and Nongovernmental Organizations," Economic Development Quarterly, , vol. 38(2), pages 113-121, May.
    7. Austin M Aldag & Yunji Kim & Mildred E Warner, 2019. "Austerity urbanism or pragmatic municipalism? Local government responses to fiscal stress in New York State," Environment and Planning A, , vol. 51(6), pages 1287-1305, September.
    8. Germà Bel & Thomas Elston, 2023. ""Disentangling the separate and combined effects of privatization and cooperation on local government service delivery"," IREA Working Papers 202311, University of Barcelona, Research Institute of Applied Economics, revised Oct 2023.
    9. Austin M Aldag & Mildred E Warner & Yunji Kim, 2019. "Leviathan or Public Steward? Evidence on Local Government Taxing Behavior from New York State," Publius: The Journal of Federalism, CSF Associates Inc., vol. 49(4), pages 671-693.

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