One or Two Tiers of Local Government? – The Cost Effects of a Regional Experiment
Moisio, Antti; Hämäläinen, Kari (2015-09-24)
Moisio, Antti
Hämäläinen, Kari
Valtion taloudellinen tutkimuskeskus VATT
24.09.2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-274-159-2
https://urn.fi/URN:ISBN:978-952-274-159-2
Tiivistelmä
This paper evaluates the cost effects of a Finnish regional self-government experiment. The experiment introduced a new intermediate tier of local administration that was given the responsibility to organize 60 per cent of public services. These services include e.g. basic health care, the majority of social services and secondary education, services that are typically provided by municipalities in Finland. Follow-up reports suggest that the experiment has resulted in massive cost-saving, especially in the social and health sectors. This paper puts previous findings under scrutiny by utilizing a synthetic control method for comparative case studies. Our findings cast serious doubts on the magnitude of the cost savings.
Tutkimusteema
Local public economics, Kunnallistalous, Regional development, Aluekehitys, Effectiveness of public services, Julkisten palvelujen vaikuttavuus
JEL
H700 - State and Local Government; Intergovernmental Relations: General, R500 - Regional Government Analysis: General
Avainsanat
regional experiment, case study, synthetic control method, local government
Kokoelmat
- VATT Working Papers [164]