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Economies of Size and Scope in Rural Low-Volume Roads

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  • Deller, Steven C
  • Chicoine, David L
  • Walzer, Norman

Abstract

Evidence on cost savings from reorganizing township low-volume, rural-road systems into larger units is presented in the study of technical efficiencies in producing local government services. Data are from a sample of midwestern townships. Heterogeneity of surface types is accounted for by specifying a multiple output translog cost function. Examination of economies of size suggest that cost savings could be realized by reorganizing townships into larger units. The presence of economies of scope suggest that jurisdictions should not specialize in maintenance responsibilities due to the joint use of inputs. Copyright 1988 by MIT Press.

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  • Deller, Steven C & Chicoine, David L & Walzer, Norman, 1988. "Economies of Size and Scope in Rural Low-Volume Roads," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 459-465, August.
    • Handle: RePEc:tpr:restat:v:70:y:1988:i:3:p:459-65
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    Cited by:

    1. Fleming, Pauline & Fleming, Euan M. & Griffith, Garry R. & Johnston, David, 2004. "Estimation of a Multi-Input Multi-Output Model of Lot-Fed Beef Cattle in Australia," Working Papers 12944, University of New England, School of Economics.
    2. Deller, Steven C. & Walzer, Norman, 1995. "Structural Shifts in the Treatment of Intergovernmental Aid: The Case of Rural Roads," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 522-535, December.
    3. Scorsone, Eric, 2007. "School District and Municipal Reorganization: Research Findings & Policy Proposals," Staff Paper Series 6543, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Wong, Ho Lun & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2013. "Providing quality infrastructure in rural villages: The case of rural roads in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 262-274.
    5. Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Kalb, Alexander, 2009. "What determines local governments' technical efficiency? The case of road maintenance," ZEW Discussion Papers 09-047, ZEW - Leibniz Centre for European Economic Research.
    7. Fleming, Euan M. & Villano, Renato A. & Fleming, Pauline, 2008. "Evidence of Scope Economies in the Australian Wheat-Sheep Zone," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36849, Agricultural Economics Society.
    8. Justin Trogdon & Donatus Ekwueme & Sujha Subramanian & Wesley Crouse, 2014. "Economies of scale in federally-funded state-organized public health programs: results from the National Breast and Cervical Cancer Early Detection Programs," Health Care Management Science, Springer, vol. 17(4), pages 321-330, December.
    9. Alexander Kalb, 2014. "What Determines Local Governments' Cost-efficiency? The Case of Road Maintenance," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1483-1498, September.
    10. Swetlana Renner & Thomas Glauben & Heinrich Hockmann, 2014. "Measurement and decomposition of flexibility of multi-output firms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(5), pages 745-773.
    11. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    12. Liu, Jing & Bailey, DeeVon, 2013. "Examining Economies of Scale for Farmer Cooperatives in China’s Shanxi Province," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 41(2), pages 1-30.
    13. Villano, Renato A. & Fleming, Pauline & Fleming, Euan M., 2008. "Evidence of Scope Economies in Australian Agriculture," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5996, Australian Agricultural and Resource Economics Society.
    14. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.
    15. Sjoquist, David L. & Walker, Mary Beth, 1999. "Economies of Scale in Property Tax Assessment," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 207-20, June.
    16. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
    17. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere [Basic elements defining the standard cost concept. A survey ," MPRA Paper 29683, University Library of Munich, Germany.
    18. D'Inverno, Giovanna & Carosi, Laura & Ravagli, Letizia, 2018. "Global public spending efficiency in Tuscan municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 102-113.
    19. Krause, Mark A., 1996. "Cost Savings From Consolidating North Dakota'S Counties," Agricultural Economics Reports 23321, North Dakota State University, Department of Agribusiness and Applied Economics.
    20. Mekhora, Thamrong & Fleming, Euan M., 2004. "An Analysis of Scope Economies and Specialisation Efficiencies Among Thai Shrimp and Rice Smallholders," Working Papers 12914, University of New England, School of Economics.
    21. William D. Duncombe & Jeffrey L. Brudney, 1995. "The Optimal Mix of Volunteer and Paid Staff in Local Governments: an Application To Municipal Fire Departments," Public Finance Review, , vol. 23(3), pages 356-384, July.

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