The impact of inter-municipal cooperation on local public spending
The purpose of this paper is to assess the effects of inter-municipal fiscal cooperation on municipal public spending, based on the French experience. We estimate a model of municipal spending choice using panel data and spatial econometrics for municipalities over the period 1994-2003. We provide two main results. First, inter-municipal cooperation has no significant impact on the level of municipal public spending, which suggests that cooperation does not achieve its goal of reducing municipal spending by the sharing of local responsibilities. Second, there are no spending interactions between municipalities belonging to the same inter-municipal community. This is in line with the goal assigned to cooperation in terms of internalization of spatial externalities. However, our results show that benefit spillovers remain highly significant outside inter-municipal communities, suggesting that inter-municipal communities remain too small.
|Date of creation:||11 Sep 2012|
|Date of revision:|
|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00730555|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Linda Veiga & Francisco Veiga, 2004.
"Political business cycles at the municipal level,"
ERSA conference papers
ersa04p427, European Regional Science Association.
- Christoph A. Schaltegger & Benno Torgler & Simon Zemp, 2009.
"Central City Exploitation by Urban Sprawl? Evidence from Swiss Local Communities,"
CREMA Working Paper Series
2009-07, Center for Research in Economics, Management and the Arts (CREMA).
- Christoph A. Schaltegger & Benno Torgler & Simon Zemp, 2009. "Central City Exploitation by Urban Sprawl? Evidence from Swiss Local Communities," School of Economics and Finance Discussion Papers and Working Papers Series 246, School of Economics and Finance, Queensland University of Technology.
- Turnbull, Geoffrey K & Djoundourian, Salpie S, 1993. " Overlapping Jurisdictions: Substitutes or Complements?," Public Choice, Springer, vol. 75(3), pages 231-45, March.
- Aurélie Cassette & Sonia Paty, 2006. "La concurrence fiscale entre communes est-elle plus intense en milieu urbain qu’en milieu rural ?," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 78, pages 5-30.
- Salmon, Pierre, 1987.
"Decentralisation as an Incentive Scheme,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 3(2), pages 24-43, Summer.
- SALMON, Pierre, 1987. "Decentralization as an incentive scheme," Institut des Mathématiques Economiques – Document de travail de l’I.M.E. (1974-1993) 98, Institut des Mathématiques Economiques. LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS, Université de Bourgogne.
- Albert Solé Ollé, 2005.
"Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain,"
2005/3, Institut d'Economia de Barcelona (IEB).
- Sole-Olle, Albert, 2006. "Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain," Journal of Urban Economics, Elsevier, vol. 59(1), pages 32-53, January.
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00730555. 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: (CCSD)
If references are entirely missing, you can add them using this form.