An Empirical Study of the Consolidation of Local Public Health Services in Connecticut

Abstract: Only a few studies, mostly in the case of school districts, have empirically examined the factors affecting municipal consolidations. This study contributes to the literature by empirically examining the decision of Connecticut communities to consolidate the delivery of public health services. As theory suggests, the prospect of scale economies is found empirically to increase the likelihood that a community consolidates public health services. In addition, differences across communities are found to inhibit the consolidation of public health services. Overall, the results imply that financial incentives may be necessary to encourage more regional districts because localities may underestimate the true minimum efficient scale for public health services and because heterogeneity among jurisdictions impedes regional cooperation