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Do Municipal Mergers Improve Technical Efficiency? An Empirical Analysis of the 2008 Queensland Municipal Merger Program

Bibliographic Data

ID11959560
AuthorsDana Mcquestin (0000-0002-0137-0260, University of Technology Sydney, corresponding author), Joseph Drew (0000-0003-3579-5758, University of Technology Sydney), Brian Dollery (0000-0003-2760-865X, University of New England)
Year2017
Volume77
Issue3
Pages442-455
Publication date2017-10-18
Open AccessYes
TypeARTICLE
VenueAustralian Journal of Public Administration (JOURNAL)
Journal identifiersISSN: 0313-6647 • E-ISSN: 1467-8500
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1467-8500.12286
OpenAlexW2756628343
LanguageEN
Citations received11
References cited24

Municipal mergers remain an important instrument of local government policy in numerous countries, including Australia, despite some concerns surrounding its efficacy. We consider the claim that amalgamations enhance the technical efficiency of the merged entities by examining the 2008 Queensland compulsory consolidation program that reduced the number of local authorities from 157 to 73 councils. To test the claim, we conduct locally inter‐temporal data envelopment analysis over the period 2003–2013 inclusive. Our evidence suggests that (1) in the financial year preceding the mergers, there was no statistically significant difference in the typical efficiency scores of amalgamated and non‐amalgamated councils and (2) 2 years following the mergers, the typical technical efficiency score of the amalgamated councils was well below the non‐amalgamated cohort. We argue this may be attributed to increased spending on staffing expenses, although comparatively larger operational expenditure also served to diminish efficiency

Business · Consolidation (business · Data envelopment analysis · Economics · Local government · Management · Political science · Public economics · Staffing · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public Administration · Public-Private Partnership Projects · Accounting · Finance

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Citations per year1.57
Citation span2019 - 2026 (8)
Highly citedNo

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