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

Drew, J; Dollery, B; Kortt, MA

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

Drew, J

Dollery, B Kortt, MA

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Publication Type:: Journal Article
Citation:: Australian Accounting Review, 2016, 26 (2), pp. 122 - 131
Issue Date:: 2016-06-01

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Field	Value	Language
dc.contributor.author	Drew, J https://orcid.org/0000-0003-3579-5758	en_US
dc.contributor.author	Dollery, B	en_US
dc.contributor.author	Kortt, MA	en_US
dc.date.available	2020-05-25T19:21:55Z
dc.date.issued	2016-06-01	en_US
dc.identifier.citation	Australian Accounting Review, 2016, 26 (2), pp. 122 - 131	en_US
dc.identifier.issn	1035-6908	en_US
dc.identifier.uri	http://hdl.handle.net/10453/41791
dc.description.abstract	© 2016 CPA Australia Are efficient councils financially sustainable? We argue that an efficient council may not necessarily be financially sustainable. Our subsequent empirical analysis finds limited evidence in favour of an ‘efficiency–sustainability’ nexus. Thus, policies aimed at improving a council's efficiency may not automatically enhance their financial sustainability. Public policy makers have principally focused 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 local government system. Our results suggest limited positive associations between financial sustainability measures and municipal efficiency.	en_US
dc.relation.ispartof	Australian Accounting Review	en_US
dc.relation.isbasedon	10.1111/auar.12098	en_US
dc.title	Peas in a Pod: Are Efficient Municipalities also Financially Sustainable?	en_US
dc.type	Journal Article
utslib.citation.volume	2	en_US
utslib.citation.volume	26	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1499 Other Economics	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (Research)
pubs.organisational-group	/University of Technology Sydney/DVC (Research)/lnstitute for Public Policy and Governance
pubs.organisational-group	/University of Technology Sydney/Strength - IPPG - Institute for Public Policy and Governance
utslib.copyright.status	open_access
pubs.issue	2	en_US
pubs.publication-status	Published	en_US
pubs.volume	26	en_US

Abstract:

© 2016 CPA Australia Are efficient councils financially sustainable? We argue that an efficient council may not necessarily be financially sustainable. Our subsequent empirical analysis finds limited evidence in favour of an ‘efficiency–sustainability’ nexus. Thus, policies aimed at improving a council's efficiency may not automatically enhance their financial sustainability. Public policy makers have principally focused 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 local government system. Our results suggest limited positive associations between financial sustainability measures and municipal efficiency.

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http://hdl.handle.net/10453/41791