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Urban Studies and Planning

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Wayne State University

Transaction costs

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Full-Text Articles in Social and Behavioral Sciences

Regional Governance Institutions And Interlocal Cooperation For Service Delivery, Sung-Wook Kwon Jul 2007

Regional Governance Institutions And Interlocal Cooperation For Service Delivery, Sung-Wook Kwon

Working Group on Interlocal Services Cooperation

Fragmentation of authority defines a first-order problem by creating economies of scale and positive and negative externalities in the provision of local public services. Resolving first-order problems leads to the second-order collective action problem of developing regional institutions that alter the first-order problem in a manner that improves joint outcomes. This paper investigates how regional councils of governments facilitate service cooperation by reducing transaction costs in interlocal service contracting. I focus on the role of the regional governance organizations, the characteristics of services, and political institutions while controlling for service markets and community characteristics. The results suggest that local governments …


Institutional Collective Action And Local Goverance, Richard C. Feiock Oct 2005

Institutional Collective Action And Local Goverance, Richard C. Feiock

Working Group on Interlocal Services Cooperation

This paper elaborates the institutional collective action framework and its applications to cooperative interlocal service agreements among governments in metropolitan areas. It begins by outlining the information, negotiation, enforcement and agency cost that pose obstacles to cooperative interlocal arrangements. Next it identifies how these transaction costs, and the ability of local actors to overcome them, depend on: 1) characteristics of services; 2) characteristics of communities; 3) political institutions; and 4) structures of policy networks. Specific propositions regarding evolution and effectiveness of interlocal cooperation are advanced and an agenda to investigate institutional collective action among local governments is presented.


Cooperation Costs And The Economics Of Intergovernmental Partnerships, Soji Adelaja, Laila A. Racevskis Oct 2005

Cooperation Costs And The Economics Of Intergovernmental Partnerships, Soji Adelaja, Laila A. Racevskis

Working Group on Interlocal Services Cooperation

Increasingly, state and local governments are promoting intergovernmental coordination, cooperation, and/or outright consolidation (3Cs) based on the perceived economies of scale advantages of such joint actions. However, the growing public finance and political science literature on interregional cooperation highlights the fact that transactions or other cooperation costs may preclude the realization of economies of scale benefits. Despite this evidence, some proponents go as far as to view such collaborative actions as effective policy tools for enhancing regional economic development and competitiveness. The role of cooperation costs and their relationship to economies of scale are not well documented in the literature. …


A Transaction Costs Explanation Of Interlocal Government Collaboration, Skip Krueger, Michael Mcguire Sep 2005

A Transaction Costs Explanation Of Interlocal Government Collaboration, Skip Krueger, Michael Mcguire

Working Group on Interlocal Services Cooperation

No abstract provided.