1 Faculty of Business and Social Sciences, SDU2 Department of Political Science and Public Management, Faculty of Business and Social Sciences, SDU3 Department of Political Science and Public Management, Faculty of Business and Social Sciences, SDU
The paper examines the proposition that project size tends to increase with common pool size from the law of 1 over n (Weingast et al, 1981). This remains under-investigated and a recent study conducted by Primo & Snyder (2008) argues, and empirically substantiates, a reverse law of 1 over n. In this paper, the proposition is examined using recent municipal mergers in Denmark as a crucial case under less favorable conditions. The paper finds positive, statistically and economically significant effects of common pool size in the ultimate year of the treatment period. These results are consistent across two research designs, two outcome variables, two subsamples, and several model specifications The implications of the findings, combined with the limited potential for empirically testing Primo & Snyder’s alternative model, suggest a re-appreciation of the law of 1 over n as it was originally formulated.