City size and citizens' satisfaction: two competing theories revisited

Abstract. The Reform Theory and the Political Economy Theory postulate contradictory effects of government size on citizens' satisfaction with urban services. The former asserts that citizens' satisfaction increases with increasing size of urban governments because large units are more efficient and allows citizens to participate effectively in public policy-making. The latter postulates that citizens are more satisfied in the smaller jurisdictions because small units are more homogeneous, efficient and democratic. A series of tests performed in this study overwhelmingly supports the Political Economy Theory: citizens in small jurisdictions hold more favourable attitudes towards participation and democracy, and the smaller units are more homogeneous and more efficient in the provision of services. This in turn leads to more favourable evaluations of public services.