Abstract: The aim of this chapter is to examine whether competition between local governments leads to better performance. Whereas conventional views of local government structure emphasise the benefits of planning across wide geographical areas and co-ordination of services (Young, 1975), public choice theory draws attention to the advantages of markets and competition in local government systems. Put simply, if the structure of local government is such that councils must compete for market share, then they are more likely to be technically efficient and responsive. By contrast, if councils are guaranteed a fixed share of the market, then they are likely to be complacent, profligate and unresponsive to public needs and demands.
Publication Year: 1998
Publication Date: 1998-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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