Amalgamation impacts on local growth : Are voluntary amalgamations more efficient than compulsory amalgamations?

• The purpose of this paper is to analyse amalgamation impacts on local population and income growth as well as whether voluntary amalgamations are more efficient compared to compulsory amalgamations. The empirical analysis is based on data for 1,005 Swedish municipalities for the period 1953-1959, i.e. a six-year period after the 1952 municipal reform. The reform was state imposed and 66 percent of the newly formed municipalities were amalgamated on a compulsory basis. The results show that amalgamations had a positive effect on population growth in small municipalities. The main finding in the paper is that municipalities formed on a voluntary basis had higher population growth compared to municipalities formed on a compulsory basis. One conclusion is that local opinions are important to consider when forming a new local government structure.

Nyckelord

Economic growth

population growth

local government amalgamation

heterogenous preferences

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)