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Inter-municipal cooperation cloud and tax administrative costs

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  • Notsu, Naruki

Abstract

The influence of inter-municipal cooperation (IMC) on municipal finances remains underexplored. This study focuses on implementing the inter-municipal cooperation cloud (IMC cloud), a pioneering digital framework that facilitates cooperation among municipalities in Japan. The findings indicate that introducing the IMC cloud results in a decrease of approximately 5% in tax administrative costs. A further examination reveals that the IMC cloud offers returns to scale via cost sharing and promotes operational improvements, thereby driving savings in tax administration costs. These findings suggest the possibility that cost savings through operational improvements are an overlooked aspect in the existing studies on municipal collaboration context.

Suggested Citation

  • Notsu, Naruki, 2024. "Inter-municipal cooperation cloud and tax administrative costs," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:regeco:v:105:y:2024:i:c:s0166046224000152
    DOI: 10.1016/j.regsciurbeco.2024.103991
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    More about this item

    Keywords

    Inter-municipal cooperation; Cloud computing systems; Tax administrative costs; Tax collection;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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