
- New publications
- 2026/06/30
A new outcome of the close collaboration that the Ituna Center (EHU) and the OECD have developed in recent years has been presented in the international arena. Ituna takes part in OECD forums and research networks, analyzing international trends and sharing knowledge about the Basque tax system and fiscal federalism.
An example of this is the 22nd Annual Meeting of the Network on Fiscal Relations across Levels of Government, held at OECD headquarters on April 23 and 24. Andoni Montes and Nerea Urrutia (Ituna Center) attended, taking part in the sessions organized under the title “Fiscal Relations under Pressure” and presenting the results of their work. It was in the context of this meeting that the content of the paper “Federalism of Scale: What does the evidence suggest?”, subsequently published by the OECD, was presented. The report, published on June 10, includes researchers from Ituna among its authors.
The “Federalism of Scale” study examines the impact of scale on the efficiency of local public services in multi-level governance systems. According to the paper, the benefits and limits of economies of scale vary depending on the characteristics of the service and the context.
According to the study’s findings, the size of administrative units affects the costs and management of public services, but its effects are not always the same. While smaller jurisdictions may face higher costs, larger ones may encounter greater coordination and organizational difficulties. The paper also examines the balance between efficiency and local autonomy, through tools such as inter-municipal cooperation, the reorganization of competences, and municipal mergers. The findings show that the most suitable solution depends on the characteristics of the service and the territory, and that there is no single formula valid for all situations.
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