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Efficient municipal consolidation and local public spending: a theoretical approach

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  • Akiyoshi Furukawa

Abstract

This paper analyses whether municipal consolidation decreases local public spending, using the local public goods model. First, the conditions under which municipal consolidation achieves efficient allocation are shown. Then, this paper shows that one effect of municipal consolidation is to expand local public services and not to reduce local public expenditure.

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  • Akiyoshi Furukawa, 2022. "Efficient municipal consolidation and local public spending: a theoretical approach," Applied Economics Letters, Taylor & Francis Journals, vol. 29(8), pages 746-749, May.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:8:p:746-749
    DOI: 10.1080/13504851.2021.1884836
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