The unique municipality structure in the Czech Republic is one of the most interesting research topics in the Czech political space. The large number of municipalities with less than 1,000 or less than 500 inhabitants causes differences between Czech municipalities. There are differences in economic factors, differences in the development of municipalities, among other. All of these differences are discussed by experts, researchers and politicians in term of the efficiency of the smallest municipalities. The term ‘efficiency’ is used as the benchmark for a successful or an unsuccessful government. This research evaluates the argument of efficiency presented by Deborah Stone (2002). This argument was applied to the case of Kraj Vysočina, one of the regions with the largest number of the smallest municipalities in the Czech Republic. We analysed the selected argument of efficiency – economies of scale. Based on our quantitative analysis we have confirmed that evaluating municipalities through the prism of the economies of scale argument is not a good measurement of the efficiency of municipal government. The argument of efficiency is more complex and we cannot view it only in economics terms.
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