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The Efficiency of Local Public-Service Production

The Effect of Political Institutions

Bibliographic Data

ID24045447
AuthorsPeter Bönisch, Peter Haug
Year2018
Volume74
Issue2
Pages260-291
Publication date2018-01-01
Open AccessNo
TypeARTICLE
VenueFinanzArchiv (JOURNAL)
Journal identifiersISSN: 0015-2218 • E-ISSN: 1614-0974
PublisherMohr Siebeck (PUBLISHER)
DOI10.1628/fa-2018-0008
OpenAlexW2807186947
LanguageEN
Citations received1

Reforms replacing municipal cooperations by centralized municipalities often aim at increasing municipal efficiency. Empirical evidence supporting this aim, however, is ambiguous. Our paper analyzes the effect of institutions on municipal efficiency. In particular, we distinguish two archetypal institutional settings, a centralized and a confederal one, and argue that bureaucrats in a centralized setting are able to increase the fiscal residual. Our empirical test case is the German federal state of Saxony-Anhalt. We test the effect of the institutional setup using the bootstrap approach suggested by Simar and Wilson (2007), concluding that a decentralized institutional setting improves the efficiency of municipal production.

Business · Economics · Microeconomics · Political science · Politics · Production (economics) · Public service · Service (business) · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Law · Local Government Finance and Decentralization · Marketing · Public Administration

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Citations per year0.5
Citation span2024 - 2024 (1)
Highly citedNo

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