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SCALE ECONOMIES AND POLICE DEPARTMENT CONSOLIDATION: EVIDENCE FROM LOS ANGELES
Authors:MILES FINNEY
Institution:Assistant Professor, Department of Economics and Statistics, California State University, Los Angeles, 5151 State University Drive, 90032 1–213–343–2937, Fax 1–213–343–5462 E-mail
Abstract:This paper tests for scale economies for police departments operating in Los Angeles County. Intergovernmental sharing in providing police services prevails within the county, suggesting that scale economies exist in producing this public good. Empirical analysis here rejects the hypothesis that police output is produced under increasing returns, which would be an efficiency explanation for the large degree of consolidation found within the county.
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