Evidence on economies of scale in local public service provision: A meta‐analysis

The standard theory of optimal jurisdictional size hinges on the existence economies scale in provision local public goods and services. However, despite its relevance for forced amalgamation programs related policies, empirical evidence such remains elusive. main goal this paper is to produce an updated comprehensive quantitative review using a meta-analysis approach systematize wide range approaches modeling frameworks found previous literature. Our analysis confirms presence moderately increasing constant returns services with no reduction average costs production delivery most beyond certain, modest size, which many studies have estimated at 10,000 residents. Also, potential differs least across three traditional services: education, water sanitation, garbage collection, being highest education lowest collection. also offers guidelines future research area. Physical output cost data should be used, together translog specifications functions. Last, we find that determinants elasticity include bidirectional publication bias population density but do not or absence modern “lean” technologies (perceived) capital intensity sector, contrary conventional wisdom. These findings significant policy implications countries considering consolidation programs.