25 Years IWH

Dr Peter Haug

Dr Peter Haug
Current Position

since 10/02

Economist in the Research Area Urban Economics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • efficiency of public service provision
  • local public finance
  • local public economics
  • municipal infrastructure and demographic change
  • data protection officer

Peter Haug has been working in the Research Area Urban Economics (former Department of Urban Economics) since 2002, since 2010 as senior economist. His research focuses on local public finance, local public economics and efficiency of public service provision.

Peter Haug studied economics at the University of Passau. Then he worked as a research assistant at the Institute of Public Finance of the Helmut-Schmidt-University in Hamburg where he received his PhD in 2003. The title of his PhD thesis was "Kommunale Wirtschaftsförderung – Eine theoretische und empirische Analyse" [Local Economic Development – A Theoretical and Empirical Analysis].

Your contact

Dr Peter Haug
Dr Peter Haug
Mitglied - Department Research Area Urban Economics
Send Message +49 345 7753-709

Publications

Diversifikation und regionale Wirtschafts- und Beschäftigungsentwicklung - Eine empirische Analyse für ausgewählte deutsche Gebiete

Peter Haug

in: Jahrbuch für Regionalwissenschaft , No. 2, 2004

Abstract

This article analyses the effects of heterogeneous economic structures on the long-term development of regional employment. A simple model is introduced to illustrate the beneficial outcomes for households as well as for enterprises of locating in highly diversified municipalities because risk (volatility of income, recruitment costs in a broader sense) diminishes for both. Econometric results for a sample of municipalities in Lower Saxony provide some evidence for a positive effect of local economic diversification on employment opportunities. The results seem to be not confined to the aggregated local labour demand but also apply to most branches the local business sector.

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Effects of “Democratic Control” on the Efficiency of Local Public Enterprises: Empirical Evidence for Water Suppliers in Eastern Germany

Peter Haug

in: Public Finance and Management , No. 1, 2008

Abstract

This paper deals with the effects of interference by local governments on the business affairs of publicly owned utilities. A partial model is presented to illustrate the consequences of “democratic control” on the public managers’ effort and the efficiency of local public production. To empirically check the theoretical results, a two-stage data envelopment analysis (DEA) was carried out on a sample of Eastern German water suppliers. The organizational form is used in the regression analysis to measure the degree of municipal control. The results of the OLS- and Tobit regression indicate an efficiency-enhancing effect on organizational forms with less distinctive control options for local politicians.

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Gemeindegröße, Verwaltungsform und Effizienz der kommunalen Leistungserstellung – Das Beispiel Sachsen-Anhalt

Peter Haug

in: Raumforschung und Raumordnung , No. 4, 2013

Abstract

Municipality Size, Institutions and Efficiency of Municipal Service Provision: The Case of Saxony-Anhalt: In this contribution we analyze the determinants of the efficiency of municipal service production using the example of the German state of Saxony-Anhalt. The focus lies on the effects of municipality size, institutional setting and spatial or demographic factors. We perform a robust non-parametric frontier estimation (Convex order-m).The results reveal e.g. no efficiency deficits of municipal associations and a significant impact of demographic factors and settlement structures.

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Working Papers

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Vertical Grants and Local Public Efficiency

Ivo Bischoff Peter Bönisch Peter Haug Annette Illy

in: IWH Discussion Papers , No. 1, 2013

Abstract

This paper analyses the impact of vertical grants on local public sector efficiency. First, we develop a theoretical model in which the bureaucrat sets the tax price while voters choose the quantity of public services. In this model, grants reduce efficiency if voters do not misinterpret the amount of vertical grants the local bureaucrats receive. If voters suffer from fiscal illusion, i.e. overestimate the amount of grants, our model yields an ambiguous effect of grants on efficiency. Second, we use the model to launch a note of caution concerning the inference that can be drawn from the existing cross-sectional studies in this field: Taking into account vertical financial equalization systems that reduce differences in fiscal capacity, empirical studies based on cross-sectional data may yield a positive relationship between grants and efficiency even when the underlying causal effect is negative. Third, we perform an empirical analysis for the German state of Saxony-Anhalt, which has implemented such a fiscal equalization system. We find a positive relationship between grants and efficiency. Our analysis shows that a careful reassessment of existing empirical evidence with regard to this issue seems necessary.

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Does Intermunicipal Cooperation Increase Efficiency? Evidence from the Hessian Wastewater Sector

F. Blaeschke Peter Haug

in: IWH Discussion Papers , No. 11, 2014

Abstract

This paper analyzes the relationship between intermunicipal cooperation and efficiency of public service provision. The organizational arrangements, including self-provision, joint pro-vision or contracting, affect politicians’ and bureaucrats’ incentives as well as internal transaction costs. Hence, cooperation gains from scale effects have to be weighed against technical inefficiencies. We analyze wastewater disposal for a unique dataset of small and medium-sized Hessian municipalities. We employ a two-stage DEA (DEA = Data Evelopment Analysis) bootstrap approach to calculate relative efficiency measures controlling for organizational arrangements and further environmental variables. Jointly providing municipalities and contractor municipalities score lower in terms of technical efficiency than self-providing and contracting municipalities. The scope for increasing scale efficiency turns out to be limited and hence, only small municipalities may benefit from scale economies from cooperation. The findings suggest that small municipalities should rely on contracting or on joint provision with a high degree of vertical integration.

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Grant Dependence, Regulation and the Effects of Formula-based Grant Systems on German Local Governments: A Data Report for Saxony-Anhalt

Peter Haug

in: IWH Discussion Papers , No. 2, 2013

Abstract

Recent empirical studies have found – seemingly − efficiency-enhancing effects of vertical grants on local public service provision. The main purpose of this paper is to prepare an elaborate theoretical and empirical analysis of these contradictory results. Therefore, it investigates if certain fiscal and institutional conditions (fiscal stress, fiscal rank-preserving vertical grant systems, input- and output regulation), that might help to explain these empirical findings, are characteristic of at least some parts of the local government sector or certain regions. The German state of Saxony-Anhalt is chosen for case study purposes. The main results are: First, the local governments suffer from severe fiscal problems such as high grant dependency, low tax revenues and the prevalent inability to finance investments by own resources. Second, the output- and input-regulation density of certain mandatory municipal services (schools, childcare facilities, fire protection) is high. Finally, the most important vertical grant category for local governments, the formula-based grants (“Schlüsselzuweisungen”), can be described as mainly exogenous, unconditional block grants that in most cases preserve the relative fiscal position of the grant recipients.

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