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Local government cooperation at work: a control function approach
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies. Univ Naples Federico II, DISES, I-80126 Naples, Italy.;Univ Naples Federico II, CSEF, I-80126 Naples, Italy; Via Cintia,Monte S Angelo 1, I-80126 Naples, Italy..
IMT Sch Adv Studies Lucca, Piazza S Ponziano 6, I-55100 Lucca, Italy..
Univ Lumiere Lyon 2, Univ Lyon, CNRS, GATE Lyon St Etienne, 93 Chemin Mouilles, F-69130 Ecully, France..
CREM CNRS Univ Caen Normandie, F-14032 Caen 5, France..
2017 (English)In: Journal of Economic Geography, ISSN 1468-2702, E-ISSN 1468-2710, Vol. 17, no 2, 435-463 p.Article in journal (Refereed) Published
Abstract [en]

We analyse voluntary coalition formation using a unique panel data for 1056 municipalities in the French region of Brittany between 1995 and 2002. We use a control function approach to develop a binary discrete choice model with spatial interactions. We find that a municipality's decision to cooperate over the provision of local public goods depends on the decisions made by its neighbours. In particular, the probability of cooperating with neighbouring municipalities is higher if the latter already provide joint local public goods. This suggests that functional cooperation is likely to emerge due to a mimicking motivation and is poorly motivated by political alignment. The results are in line with the recent applied spatial economics literature but are derived for a discrete choice model setting.

Place, publisher, year, edition, pages
OXFORD UNIV PRESS , 2017. Vol. 17, no 2, 435-463 p.
Keyword [en]
Local governments, cooperation, control function approach, panel data
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-320278DOI: 10.1093/jeg/lbw008ISI: 000397990700007OAI: oai:DiVA.org:uu-320278DiVA: diva2:1091881
Available from: 2017-04-28 Created: 2017-04-28 Last updated: 2017-04-28Bibliographically approved

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