Decentralization vs economies of scale: expenditure on maintenance of municipalities’ property

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Authors

PLAČEK Michal MATĚJOVÁ Lenka KŘÁPEK Milan PŮČEK Milan OCHRANA František

Year of publication 2014
Type Article in Proceedings
Conference Proceedings of the 19th International Conference: Theoretical and Practical Aspects of Public Finance 2014
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Management and administrative
Keywords economies of scale; decentralization; property maintenance; municipalities; Czech Republic
Description The paper is focused on analysis of expenditure on maintenance of municipalities’ property (expenditure on repair and maintenance of sidewalks, school facilities and municipal authorities) in time period 2005-2012 and on discussion about economies of scale at the level of municipalities in the Czech Republic. In the other words, the paper analyzes the dependence of the per capita expenditure on choosing public service of municipality and the size of municipality in terms of number of in-habitants. Based on the results authors try to determine the optimal size of munici-pality. The issue becomes very relevant in the present time after global financial cri-sis which has had a significant impact on municipalities’ budgets in the conditions of the Czech Republic. On basis of analysis it can be concluded that the optimal size of municipality lies in interval 15.339 to 80.143 inhabitants. However the selected procedure left some analyzed data unexplained.
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