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Better Alone? Evidence on the Costs of Intermunicipal Cooperation

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  • Clémence Tricaud

    (UCLA Anderson School of Management, CEPR - Center for Economic Policy Research - CEPR, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

This paper provides new evidence on why municipalities are often reluctant to integrate. Exploiting a French reform that made intermunicipal cooperation mandatory, I find that urban municipalities forced to integrate experienced a large increase in construction, consistent with NIMBYism explaining their resistance, while rural municipalities ended up with fewer local public services. I do not find the same effects for municipalities that had voluntarily integrated prior to the law, while both types of municipality enjoyed similar benefits in terms of public transport and fiscal revenues. These findings support the fact that municipalities resisted to avoid the local costs of integration.

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  • Clémence Tricaud, 2021. "Better Alone? Evidence on the Costs of Intermunicipal Cooperation," SciencePo Working papers Main hal-03380333, HAL.
  • Handle: RePEc:hal:spmain:hal-03380333
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03380333
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    4. Ning Jia & Huiyong Zhong, 2022. "The Causes and Consequences of China's Municipal Amalgamations: Evidence from Population Redistribution," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 174-200, July.
    5. Tsuyoshi Goto, 2023. "Do municipal mergers reduce public expenditure? Evidence from the MTE approach," Economics Bulletin, AccessEcon, vol. 43(3), pages 1366-1376.
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    8. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," Post-Print hal-03619549, HAL.
    9. Schmutz, Benoît & Verdugo, Gregory, 2023. "Do elections affect immigration? Evidence from French municipalities," Journal of Public Economics, Elsevier, vol. 218(C).
    10. Jaaidane, Touria & Larribeau, Sophie, 2023. "The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector," European Journal of Political Economy, Elsevier, vol. 76(C).
    11. Howard, Greg & Liebersohn, Jack, 2021. "Why is the rent so darn high? The role of growing demand to live in housing-supply-inelastic cities," Journal of Urban Economics, Elsevier, vol. 124(C).
    12. Guillaume Chapelle & J.B. Eyméoud & C. Wolf, 2023. "Land-use regulation and housing supply elasticity: evidence from France," THEMA Working Papers 2023-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    13. Pierre Magontier & Albert Solé-Ollé & Elisabet Viladecans Marsal, 2021. "The Political Economy of Coastal Development," CESifo Working Paper Series 9059, CESifo.
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    More about this item

    Keywords

    Local governments; Intermunicipal cooperation; Difference-in-differences; Housing regulations; Local public services;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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