Modelling additional costs of multi-municipal urban areas

On behalf of the State Administrator in Rogaland county, Vista will develop an economic model for calculating additional costs of a divided municipal structure in urban areas. The model shall estimate net gains from consolidating the urban area into one large municipality. The model design will be general, and we aim to build a model that can prove useful for analysis of relevant urban areas throughout Norway. We will test the model on two urban areas in Rogaland; Stavanger urban area and Haugesund urban area.

The model includes short-term effects and longer-term effects. Short term effects are expected to be reflected in the individual municipalities' finances, as well as in the efficiency of municipal service production. The model will include long-term effects such as city attractiveness, agglomeration effects, land use and planning.

The project confirms Vista Analyse’s leading role on economic modelling and socio-economic analysis.

The new model will be delivered December 1st 2021.