Was It Worth It? The Territorial Reform in the Canton of Glarus

Abstract

This paper examines the financial impact of the 2011 reform of the local governments and jurisdictions in the canton of Glarus. After a popular vote 70 public entities were reorganized to form three large uniformed communes. Previous research showed that amalgamations do not automatically lead to savings in public expenditures and economies of scale. We empirically apply the synthetic control method and show that the territorial reform realized some savings in public expenditure. However, the effect of the reorganization of tasks and responsibilities between the canton and the communes was more influential. The reform must be understood as a horizontal and vertical venture that encompasses both the communes and the canton, much more far-reaching than a pure local territorial reform.