Andrews, Rhys William ![]() |
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Abstract
Proponents of the vertical consolidation of lower-tier units into a smaller number of single-tier local governments suggest that it improves the financial sustainability of governments by generating economies of scale and scope. However, critics suggest that such structural change is beset with disruptive and unanticipated costs that outweigh any potential efficiency savings. I investigate the validity of these contrasting arguments by analysing the expenditure and fiscal health of English county councils before and after the consolidation of the lower-tier units within several counties that took place in 2009. Levels of financial sustainability are modelled using a difference-in-difference estimator for the years 2003–2012. The results suggest that in the short run the consolidated governments have been able to realize administrative economies, but their fiscal health has weakened. These findings appear to be robust to the possibility of selection effects. Theoretical and practical implications are discussed.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Subjects: | H Social Sciences > HC Economic History and Conditions J Political Science > JN Political institutions (Europe) > JN101 Great Britain J Political Science > JS Local government Municipal government |
Publisher: | SAGE Publications |
ISSN: | 0263-774X |
Date of First Compliant Deposit: | 30 March 2016 |
Date of Acceptance: | 4 August 2014 |
Last Modified: | 29 Nov 2024 14:15 |
URI: | https://orca.cardiff.ac.uk/id/eprint/84788 |
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