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An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil
Journal article   Open access   Peer reviewed

An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil

L V Bernardelli, B E Dollery and M A Kortt
Sustainability, Vol.13(591), 591
2021
url
https://doi.org/10.3390/su13020591View
Published (Version of record) Open

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Abstract

Brazil optimal municipal size economies of scale Paraná administrative intensity local government
A substantial empirical study has investigated scale economies in local government functions, most notably in local transportation, water, and wastewater provision. By contrast, relatively little effort has been directed at the empirical analysis of economies of scale in municipal administration, including in Brazilian local government, despite its significance for public policy on structural reform in local government. In order to address this gap in the literature, we investigate administrative scale economies in the Paraná state local government system in Brazil over the period 2006 to 2018. We find that there was a ‘U-shaped’ scale effect between council size by population and administrative intensity after controlling for a range of economic and social variables. Various public policy implications are considered.

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