Local government reform

Abstract

My purpose here is not to argue one way or the other as regards the controversy about the proper role, structure or finance of local authorities in Ireland. I propose to do no more than to parade some of the contributions which economics can make to an analysis of these issues. Much of what I have to say may seem rather remote from the nuts and bolts of reform, but I believe that we have only two sensible options for local Government: scrap it or completely reconstruct it. Some fairly basic analysis may therefore be of value. From an economic viewpoint, the design of polities should at a minimum consider the following: macroeconomic implications; efficiency in resource allocation; implications for the distribution of welfare; and efficiency in public choice. I shall use this taxonomy, although in a flexible way which reflects the non-separability of these categories.