Do good things come in small packages? The effects of size on municipal performance

Abstract This research shows the direct and indirect effects of size on the performance of the Brazilian municipalities in the state of Santa Catarina, considering the academic debate around the issue. The research examined all municipalities of the state from 2005 to 2016, a period that comprised three municipal elections. The study sample consisted of 3,504 observations, with 293 municipalities, during these 12 years. The panel data analysis was estimated by Feasible Generalized Least Squares (FGLS). The results suggest that size affects municipal performance positively and directly. Also, size influences indirectly when considering the mayor’s schooling, i.e., the larger the municipality and the higher the mayor’s schooling, the better the municipal performance. The analysis of performance based on municipal tax (IPTU) collected per capita showed that, the larger the population, the higher the IPTU per capita, which means that larger municipalities tend to show better performance. Finally, the analysis of performance based on the percentage of IPTU levied from total tax revenue showed that size and size associated with the mayor’s capability did not affect performance.

摘要
本研究结合该议题的相关学术争论，探讨了行政规模对巴西圣卡塔琳娜州（Santa Catarina）各市政当局绩效的直接与间接影响。研究覆盖该州2005年至2016年间的全部市政当局，该时段共经历三次市政选举。本研究样本包含这12年间293个市政当局的3504组观测值，并采用可行广义最小二乘法（Feasible Generalized Least Squares，FGLS）进行面板数据分析。研究结果显示，行政规模对市政绩效存在正向直接影响。此外，当考虑市长受教育水平这一变量时，行政规模还可通过间接路径发挥作用：市政规模越大、市长受教育程度越高，市政绩效便越好。基于人均征收的城市不动产税（IPTU）的绩效分析结果表明，人口规模越大，人均IPTU收入越高，这意味着规模更大的市政当局往往具备更优的绩效表现。最后，基于税收总收入中IPTU占比的绩效分析结果显示，行政规模以及与市长履职能力相关的行政规模因素，均未对绩效产生显著影响。