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Better Alone? Evidence on the Costs of Intermunicipal Cooperation

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  • Clémence Tricaud

    (UCLA Anderson School of Management, CEPR - Center for Economic Policy Research, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract
This paper provides new evidence on why municipalities are often reluctant to integrate. Exploiting a French reform that made intermunicipal cooperation mandatory, I find that urban municipalities forced to integrate experienced a large increase in construction, consistent with NIMBYism explaining their resistance, while rural municipalities ended up with fewer local public services. I do not find the same effects for municipalities that had voluntarily integrated prior to the law, while both types of municipality enjoyed similar benefits in terms of public transport and fiscal revenues. These findings support the fact that municipalities resisted to avoid the local costs of integration.

Suggested Citation

  • Clémence Tricaud, 2021. "Better Alone? Evidence on the Costs of Intermunicipal Cooperation," SciencePo Working papers Main hal-03380333, HAL.
    • Handle: RePEc:hal:spmain:hal-03380333
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03380333
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    7. Francis Kramarz & Elio Nimier‐David & Thomas Delemotte, 2022. "Inequality and earnings dynamics in France: National policies and local consequences," Quantitative Economics, Econometric Society, vol. 13(4), pages 1527-1591, November.
    8. Howard, Greg & Liebersohn, Jack, 2021. "Why is the rent so darn high? The role of growing demand to live in housing-supply-inelastic cities," Journal of Urban Economics, Elsevier, vol. 124(C).
    9. Ning Jia & Huiyong Zhong, 2022. "The Causes and Consequences of China's Municipal Amalgamations: Evidence from Population Redistribution," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 174-200, July.
    10. Boyer, Pierre & Delemotte, Thomas & Gauthier, Germain & Rollet, Vincent & Schmutz, Benoit, 2020. "The Gilets jaunes: Offline and Online," CEPR Discussion Papers 14780, C.E.P.R. Discussion Papers.
    11. Tsuyoshi Goto, 2023. "Do municipal mergers reduce public expenditure? Evidence from the MTE approach," Economics Bulletin, AccessEcon, vol. 43(3), pages 1366-1376.
    12. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," SciencePo Working papers hal-03619549, HAL.
    13. Viladecans-Marsal, Elisabet & Magontier, Pierre & Solé-Ollé, Albert, 2021. "The political economy of coastal development," CEPR Discussion Papers 15780, C.E.P.R. Discussion Papers.
    14. Touria Jaaidane & Sophie Larribeau & Matthieu Leprince, 2024. "Inter-municipal cooperation and public employment: evidence from French municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(3), pages 987-1014, March.
    15. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," SciencePo Working papers Main hal-03619549, HAL.
    16. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," Post-Print hal-03619549, HAL.
    17. Schmutz, Benoît & Verdugo, Gregory, 2023. "Do elections affect immigration? Evidence from French municipalities," Journal of Public Economics, Elsevier, vol. 218(C).
    18. Jaaidane, Touria & Larribeau, Sophie, 2023. "The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector," European Journal of Political Economy, Elsevier, vol. 76(C).
    19. Hitoshi Saito & Haruaki Hirota & Hideo Yunoue & Miki Miyaki, 2023. "Do municipal mergers internalise spatial spillover effects? empirical evidence from Japanese municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 379-406, April.
    20. Sonia Paty & Morgan Ubeda, 2021. "Inter-municipal cooperation and the provision of local public goods," Working Papers 2121, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    21. Guillaume Chapelle & J.B. Eyméoud & C. Wolf, 2023. "Land-use regulation and housing supply elasticity: evidence from France," THEMA Working Papers 2023-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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    More about this item

    Keywords

    Local governments; Intermunicipal cooperation; Difference-in-differences; Housing regulations; Local public services;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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