scholarly journals Economies of Scale in Local Government: General Government Spending

iBusiness ◽  
2012 ◽  
Vol 04 (03) ◽  
pp. 265-278 ◽  
Author(s):  
Lawrence Southwick
2019 ◽  
Vol 30 (1) ◽  
pp. 113-129 ◽  
Author(s):  
Thomas Elston ◽  
Ruth Dixon

Abstract “Administrative intensity” (AI) describes the proportion of total resources that organizations spend on administrative support functions rather than primary service and production processes. We test whether “sharing” administrative activities between organizations leads to a fall in AI due to economies of scale, as is often supposed, using organizational and financial data from more than 300 English local authorities. We employ multi-wave change score regression analysis to relate changes in AI from 2008 to 2016 to levels of shared services participation, and further test whether reform performance varies by category of local authority, type of administration, or degree of structural complexity. Although we find that some measures of AI fell slightly over this period, this was unrelated to shared service adoption for any category of local authority. Sharing of clerical rather than professional types of administration, and sharing by organizations and within partnerships characterized by lower structural complexity, also failed to improve reform outcomes. Faulty assumptions about the extent of administrative scale diseconomies in English local government partly explain this significant reform underperformance.


2021 ◽  
Vol 3 (2) ◽  
pp. 47
Author(s):  
Alno Sardi Putra ◽  
Ali Anis

This study has three main objectives, namely, first to find out how the causal relationship between local government revenue and local government expenditure in provinces in Indonesia, the second objective is to find out how the causal relationship between local government expenditure and GRDP in provinces in Indonesia. Meanwhile, the third objective is to determine the causal relationship between local government revenue and GRDP in provinces in Indonesia. In this study, the objects in this study are 33 provinces throughout Indonesia. The data used are from 2010 to 2019. The data used are secondary data obtained from the Central Statistics Agency (BPS). The analytical method used is the VAR (Vector Auto Regression) time series analysis and the cluasaility granger test. which is processed using the help of Eviews. Based on the results of hypothesis testing, it shows that: (1) There is no causal relationship between local government revenue and local government expenditure in 33 provinces in Indonesia, but what is formed is a one-way relationship between government revenue and local government expenditure in 33 Indonesian provinces. In the hypothesis testing stage (2) there is no causal relationship between local government spending and GRDP in 33 provinces in Indonesia, in the analysis stage there is no one-way or two-way relationship between government spending and GRDP. Thus the hypothesis is rejected, while the results of hypothesis testing (3) There is no causal relationship between local government revenue and GRDP in 33 provinces in Indonesia. In the analysis stage, there is no one-way or two-way relationship between each variable. Thus the third hypothesis is rejected.


Author(s):  
Peter McKinlay

The purpose of this paper is to provide a ‘work in progress’ report on some initiatives emerging from local government practice in New Zealand which should help us consider how we think about the role of local government in a world which is undergoing dramatic change. The starting point is work which the writer undertook with the support of Local Government New Zealand (the national association) and a number of New Zealand councils considering the ‘proper role’ of local government. The context is an ongoing public debate driven substantially by the New Zealand business community from a perspective that this ‘proper role’ should be restricted to the delivery of local public goods, narrowly defined. This has included argument that local governments themselves should be structured substantially to promote the efficient delivery of services generally within the now well understood prescriptions of the ‘new public management’. One implication which the business sector in particular drew in looking at the workings of local government was that there should be economies of scale through further amalgamation of councils (the local government sector having been through a major amalgamation process in 1989 which eliminated a large number of special purpose authorities and reduced the number of territorial local authorities from more than 200 to 73). Debate continues, with the latest manifestation being the National Party led government's proposals for the restructuring of local government within the Auckland region, New Zealand's major metropolitan area. The initiatives discussed in this paper are partly a response, but more significantly a result of selected local authorities reflecting on the nature of their role, and the opportunities for being proactive in using their statutory privileges in ways that could produce benefits for their communities without any associated increase in the cost of local government itself.


2019 ◽  
Vol 112 ◽  
pp. 111-121
Author(s):  
Donald J. Bruce ◽  
Celeste K. Carruthers ◽  
Matthew C. Harris ◽  
Matthew N. Murray ◽  
Jinseong Park

2019 ◽  
Vol 19 (1) ◽  
pp. 118-138
Author(s):  
Benedictus Raksaka Mahi ◽  
Syarah Siti Supriyanti

The volatility of expenditures sub-local derived from central government transparency in transfers to local governments may aggravate sublocal economy. This study aims to analyze the eect of fiscal decentralization to the level of volatility of local government spending in 230 sub-local in Indonesia. We use two periods, before and after the implementation of Law No. 28 Year 2009. The regression results indicate that the volatility of local government spending may decrease if the degree of fiscal decentralization increases, especially at the time when districts implement that law. As responsive taxation can provide incentives for smooth spending for sub-local government. ================================= Volatilitas belanja pemerintah kabupaten/kota yang berasal dari ketidakpastian transfer pemerintah pusat kepada pemerintah daerah dapat memperburuk perekonomian kabupaten/kota. Penelitian ini bertujuan menganalisis pengaruh desentralisasi fiskal terhadap tingkat volatilitas belanja riil pemerintah pada 230 kabupaten/kota di Indonesia serta membandingkan data sebelum dan sesudah implementasi UU No. 28 Tahun 2009. Hasil menunjukkan semakin tinggi derajat desentralisasi fiskal, cenderung menurunkan volatilitas belanja riil pemerintah kabupaten/kota karena kemampuan fiskal kabupaten/kota cenderung meningkat setelah implementasi UU tersebut. Pajak properti merupakan sumber penerimaan daerah yang dapat diprediksi sehingga pemerintah kabupaten/kota dapat mengelola belanja daerahnya dengan lebih pasti dan terukur.


2019 ◽  
pp. 1-35
Author(s):  
TRISTAN CANARE

Intergovernmental fiscal transfer (IFT) is one of the several sources of funds of sub-national governments. There are two general types of IFT — conditional and unconditional. In many developing economies including the Philippines, the usual existing IFT is a form of unconditional fiscal transfer called revenue shares. In the Philippines, this revenue-sharing scheme is called the internal revenue allotment (IRA). Empirical literature says that unconditional IFTs are the type of fiscal transfers with the least effect on local government spending. The literature posits that the reason for this is that local governments use these transfers to substitute for own-sourced revenues such as local taxes. This explanation was formalized through a framework presented in this paper. Using panel data from Philippine provinces for the years 2001 to 2015, this paper attempted to determine the effect of revenue shares, in the form of IRA, on local government expenditures. Using different econometric methodologies, this paper arrived at several conclusions. First, IRA has a strong positive effect on total local government spending with a marginal effect slightly greater than one — much higher than what comparable studies found using data from other countries. Secondly, the effect of IRA on local government expenditures is even stronger for provinces with relatively greater ability to generate its own funds. Next, IRA and other externally sourced revenues have much stronger marginal effects on local government spending than do own-sourced revenues. Finally, IRA has widely varying effects on different components of local government expenditures.


Author(s):  
Glen Bramley ◽  
Kirsten Besemer

While public support for local services as ‘essential’ remains high, there have been divergent trends in usage, with increases in public transport, corner shops and childrens services, but declines in information,leisure and cultural services. Distribution of service usage has become slightly more ‘pro-poor’, yet poorer groups are still more likely to report constraints in service access or quality. Services are not systematically worse in poorer neighbourhoods, in most cases, and service exclusion does not overlap much with other dimensions of social exclusion. While the service domain thus appears to continue to bolster equality, post-austerity cuts to local government spending threaten significant retrenchment in poorer localities.


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