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Exploiting the common pool or looking to the future? A study of free-riding leading up to the 2007 municipal amalgamations in Denmark

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  • Sune Welling Hansen

Abstract

Municipal amalgamations can create incentives for opportunistic behaviour. Several fairly recent studies have examined this on amalgamations in Denmark and Sweden using the so-called law of 1 over n. However, they have yielded inconclusive results and I argue that one plausible explanation is a theoretical deficiency in the law, as it does not account for how future political representation can mitigate the incentive to free-ride. I examine this using large-scale amalgamations in Denmark in 2007. This case is quite unique as the amalgamations were implemented in such a manner that they constitute a quasi-experiment, and because an extra fiscal year was added to the election period where the composition of the new councils was known with certainty, while the municipalities retained some decision-making power. The study’s findings are consistent with the argument that the incentive to free-ride depends on the decision makers’ future political stake in the new, amalgamated municipality.

Suggested Citation

  • Sune Welling Hansen, 2019. "Exploiting the common pool or looking to the future? A study of free-riding leading up to the 2007 municipal amalgamations in Denmark," Local Government Studies, Taylor & Francis Journals, vol. 45(5), pages 676-696, September.
    • Handle: RePEc:taf:flgsxx:v:45:y:2019:i:5:p:676-696
    DOI: 10.1080/03003930.2019.1586673
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    Cited by:

    1. Hyunjung Ji & Mark Patrick Tate, 2021. "Spillover effects of central cities on sustainability efforts in a metropolitan area," Policy Sciences, Springer;Society of Policy Sciences, vol. 54(1), pages 95-121, March.
    2. Hitoshi Saito & Haruaki Hirota & Hideo Yunoue & Miki Miyaki, 2023. "Do municipal mergers internalise spatial spillover effects? empirical evidence from Japanese municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 379-406, April.

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