IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_452_18.html
   My bibliography  Save this paper

Is there strength in unity? Some preliminary evidence on inter-municipal cooperation in Italy

Author

Listed:
  • Stefano Manestra

    () (Bank of Italy)

  • Giovanna Messina

    () (Bank of Italy)

  • Anna Peta

    () (Bank of Italy)

Abstract

This paper focuses on municipal unions, the most structured form of inter-municipal cooperation in Italy. Using information from multiple sources, we have built up an administrative database covering more than 500 municipal unions over the period 1998-2015. By cross-checking the information on the municipalities participating in each union with the figures from their financial statements, we have been able to follow the trend in their expenditure both before and after joining the union, acknowledging that time is needed for the effects of the cooperation to manifest themselves. We have replicated this analysis for single municipal functions in order to detect potential heterogeneity in the resulting economies of scale. The results show that belonging to a union has led to a reduction in expenditure only for some municipal functions (such as general administration, local police, roads and traffic) and over a certain time period. The main contribution of our work is that we have studied the effects of inter-municipal cooperation from a temporal perspective largely unexplored in previous studies of the Italian case.

Suggested Citation

  • Stefano Manestra & Giovanna Messina & Anna Peta, 2018. "Is there strength in unity? Some preliminary evidence on inter-municipal cooperation in Italy," Questioni di Economia e Finanza (Occasional Papers) 452, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_452_18
    as

    Download full text from publisher

    File URL: http://www.bancaditalia.it/pubblicazioni/qef/2018-0452/QEF_452_18.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Albert Solé-Ollé & Núria Bosch, 2005. "On the Relationship between Authority Size and the Costs of Providing Local Services: Lessons for the Design of Intergovernmental Transfers in Spain," Public Finance Review, , vol. 33(3), pages 343-384, May.
    2. Quentin Frère & Matthieu Leprince & Sonia Paty, 2014. "The Impact of Intermunicipal Cooperation on Local Public Spending," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1741-1760, June.
    3. Juan Luis Gómez-Reino & Jorge Martinez-Vazquez, 2013. "An international perspective on the determinants of local government fragmentation," Chapters,in: The Challenge of Local Government Size, chapter 2, pages 8-54 Edward Elgar Publishing.
    4. Avinash Dixit, 1973. "The Optimum Factory Town," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 637-654, Autumn.
    5. Geys, Benny & Heinemann, Friedrich & Kalb, Alexander, 2007. "Local Governments in the Wake of Demographic Change: Efficiency and Economies of Scale in German Municipalities," ZEW Discussion Papers 07-036, ZEW - Leibniz Centre for European Economic Research.
    6. Sabrina Iommi & Donatella Marinari, 2016. "Frammentazione comunale e spesa pubblica: una proposta di aggregazione sui sistemi locali del lavoro," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(1), pages 107-136.
    7. Giampaolo Arachi & Giuseppe Di Liddo & Michele G. Giuranno, 2016. "Cooperazione locale in Italia: le unioni di comuni," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(1), pages 11-36.
    8. Reto Steiner, 2003. "The causes, spread and effects of intermunicipal cooperation and municipal mergers in Switzerland," Public Management Review, Taylor & Francis Journals, vol. 5(4), pages 551-571, December.
    9. Giovanna Di Ielsi & Francesco Porcelli & Alberto Zanardi, 2016. "La valutazione dell’efficienza nelle forme associate dei Comuni italiani: la lezione dei fabbisogni standard," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(1), pages 37-58.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Municipal Unions; public expenditure; economies of scale;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_452_18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/bdigvit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.