Intergovernmental cooperation, public consortia, and systems for distributing costs and benefits

Abstract

In this paper, we seek to clarify how intermunicipal consortia distribute benefits and costs among their members, a relevant point to structure the willingness to cooperation between partners. Under the case study in three government areas, we identify two patterns of the systems for sharing costs and benefits. In the first, the division agreement is restricted to routine expenses of the consortium, while additional agreements with each member ensure contributions, ex post, according to the proportion of benefits enjoyed. In the second, the division agreement itself includes criteria that allow equalizing, ex ante, such contributions and benefits. In the end, we consider restrictions on functions performed by consortia in public policies, due to the reasoning by which each member pays for what it consumes.