Regional governments in the rural space: the effectiveness of dual-tier regional councils
研究了农村地区双层地方政府结构比单一结构更有效,通过以色列数据模拟发现,纳入区域委员会的村庄比独立运营的村庄效率更高。
The fiscal decentralization literature explores the efficient structure of local governments. However, little consideration has been given to the efficient structure of rural local governments. In this study we show that a dual-tier local government structure in rural areas is more efficient than the prevalent unitary structure. Specifically, we demonstrate that a regional council that incorporates many small villages is more efficient than when each village operates as an independent local government. We present a theoretical model and provide a simulation of the model using Israeli municipal data, which combines both unitary and dual-tier structures. The simulation uses the unitary small towns as the training set and the villages within regional councils as the test set. It thus calculates the cost structure of villages within regional councils based on the data of unitary small towns. The results indicate that most villages that are part of a regional council operate more efficiently than their simulated independent unitary counterparts. Based on the findings, we suggest an alternative lower level local government structure for rural communities that adds a mezzanine dual-tier structure.