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Inter-municipal cooperation in administrative tasks – the role of population dynamics and elections

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  • Ivo Bischoff
  • Eva Wolfschütz

Abstract

We use a hazard model to identify the factors that drive the emergence of inter-municipal cooperation (IMC) in tasks of internal administration in West-Germany between 2003 and 2014. Our first focus rests on the role of population decline. The results show that municipalities situated in clusters of shrinking municipalities are more likely to start IMC. Second, we test for the role of political cycles in the timing of IMC-arrangements. There is no direct effect of the proximity to elections yet IMC in election years is more (less) likely among municipalities characterised by high (low) fiscal capacity and administrative expenditures. In addition, state subsidies for IMC are found to have a strong positive impact on the emergence of IMC.

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  • Ivo Bischoff & Eva Wolfschütz, 2021. "Inter-municipal cooperation in administrative tasks – the role of population dynamics and elections," Local Government Studies, Taylor & Francis Journals, vol. 47(4), pages 568-592, July.
    • Handle: RePEc:taf:flgsxx:v:47:y:2021:i:4:p:568-592
    DOI: 10.1080/03003930.2020.1771307
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    1. Edoardo Di Porto & Angela Parenti & Sonia Paty & Zineb Abidi, 2017. "Local government cooperation at work: a control function approach," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 435-463.
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    4. Ivo Bischoff & Stefan Krabel, 2017. "Local taxes and political influence: evidence from locally dominant firms in German municipalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 313-337, April.
    5. Christian Bergholz & Ivo Bischoff, 2018. "Local council members’ view on intermunicipal cooperation: does office-related self-interest matter?," Regional Studies, Taylor & Francis Journals, vol. 52(12), pages 1624-1635, December.
    6. Christian Bergholz & Ivo Bischoff, 2019. "Citizens’ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse," Applied Economics, Taylor & Francis Journals, vol. 51(12), pages 1268-1283, March.
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    9. Germà Bel & Mildred E. Warner, 2016. "Factors explaining inter-municipal cooperation in service delivery: a meta-regression analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(2), pages 91-115, June.
    10. Frederic Blaeschke, 2014. "What drives small municipalities to cooperate? Evidence from Hessian municipalities," MAGKS Papers on Economics 201414, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Di Liddo, Giuseppe & Giuranno, Michele G., 2016. "Asymmetric yardstick competition and municipal cooperation," Economics Letters, Elsevier, vol. 141(C), pages 64-66.
    12. Germà Bel & Marianna Sebo, 2018. "“Does inter-municipal cooperation really reduce delivery costs? An empirical evaluation of the role of scale economies, transaction costs, and governance arrangements”," IREA Working Papers 201816, University of Barcelona, Research Institute of Applied Economics, revised Jul 2018.
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    Cited by:

    1. Ivo Bischoff & Simon Melch & Eva Wolfschuetz, 2019. "Does tax competition drive cooperation in local economic development policies? Evidence on inter-local business parks in Germany," MAGKS Papers on Economics 201906, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Eva Wolfschuetz, 2020. "The Effect of Inter-municipal Cooperation on Local Business Development in German Municipalities," MAGKS Papers on Economics 202005, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).

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    More about this item

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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