Structural Reform: Municipal Mergers

The boundaries of the firm revisited

“…This issue deserves to be explored in future work. 22 It is also questionable whether it makes sense to consider one transaction at a time when one tries to understand how the new boundaries are drawn. In market networks, interdependencies are more than bilateral, and how one organizes one set of transactions depends on how the other transactions are set up.…”

“…The world is replete with alternative instruments and, as always, the economically interesting action is at the margin of these substitutions. 22 See Halonen (1994) for a first modeling effort along these lines.…”