Financial Opportunism in the Face of Local Government Mergers in Denmark
The paper outlines a theoretical framework for understanding reform-related opportunism in connection with current local government mergers in Denmark. The chain of reasoning is based on a local government version of the political business cycle. Where this model predicts cyclical financial patterns on reversible financial expenditures within each election period, the developed argument on local government mergers posits a pattern on non-reversible expenditures in the immediate years preceding them. The paper utilizes a theory-testing design with explanatory factors on two levels (individual and group level). This is achieved with the aid of insights from collective action theory.
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First World Meeting of the Public Choice Society, at the Amsterdam School of Economics at the University of Amsterdam, 2007