Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103878
Authors: 
Blesse, Sebastian
Baskaran, Thushyanthan
Year of Publication: 
2014
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 176 [rev.]
Abstract: 
We study the fiscal consequences of municipal mergers by making use of a largescale merger reform in the German federal state of Brandenburg. In addition to being the first evaluation of an East-German merger reform, this study contributes to the literature by exploring the fiscal consequences of both compulsory and (semi-) voluntary municipal mergers within the same institutional setting. Using a difference-in-difference design with municipality-level panel data over 1998-2005, we find substantial and immediate reductions in total, administrative, and current expenditures after compulsory mergers. Voluntary mergers, on the other hand, have smaller and less robust effects.
Subjects: 
municipal mergers
economies of scale
voluntary and compulsory mergers
JEL: 
H11
H72
H77
R53
Document Type: 
Working Paper

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