Efficient or Optimal

Although on paper the larger governments seem orderly and efficient, voters have distrusted recommendations of planners and political scientists who traditionally have postulated that "fragmentation" of local government is not economically rational. Still, the voters have instinctively sided with smaller, perceived more accountable, decentralized governments instead of metropolitan government or major consolidations.
What reasons and data may be offered to justify smaller governments instead of moving toward centralized local government? The optimum allocation of resources, or economic efficiency, could be the underlying principle. The true level and mixture of local services taxpayers wish to purchase (police and fire protection, parks, sanitation services, and sidewalks, for example) is more likely to be reflected when different packages of goods are offered by competing local jurisdictions. Since people have the opportunity to vote with their feet, they can move to the jurisdiction offering the combination and level of local services at a price (or level of taxes) that best suits them. Some may deem backyard garbage collection so important that they wish to pay for it. Others may opt for a less costly method, but highly value police cruising through their neighborhoods. When only one level of local service is available, as offered by one centralized government, people have no choice. Thus there is no competition, and taxes are likely to be higher. The local government is invariably under pressure to provide the best possible service at the lowest possible cost. Local officials must deal with the difficult and contradictory tasks of providing quality and efficiency of service, as well as a decent working environment at an acceptable cost level. An extremely efficient service might eliminate lines, but costs are likely to be very high. On the other hand, poor service by keeping people waiting in a stressful environment is not compatible with sound customer service and certainly does not provide a positive working condition. The key is to find the correct balance between the service offered and the cost of providing that service.