Peas in a Pod: Are Efficient Municipalities Also Financially Sustainable?

Publisher:
Wiley: 24 months
Publication Type:
Journal Article
Citation:
Australian Accounting Review, 2016, 26 (2), pp. 122 - 131
Issue Date:
2016-06-16
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Public policy makers have principally focussed on improving the operational efficiency of local government on the presumption that this will result in a more financially sustainable sector. We argue that it is erroneous to assume that an efficient local government entity will necessarily be more fiscally sustainable. To test this argument, we apply an innovative method for empirically testing the association between financial sustainability and operational efficiency to the New South Wales (NSW) local government system. Our results suggest limited positive associations between financial sustainability measures and municipal efficiency.
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