On the Determinants of Local Government Debt: Does One Size Fit All?

Balaguer-Coll, María Teresa; Prior, Diego; Tortosa‐Ausina, Emili

doi:10.1080/10967494.2015.1104403

Cited by 45 publications

(40 citation statements)

References 53 publications

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“…The size of population is one of the criteria for the distribution of public revenues from indirect taxes in FBiH. As an illustration, a higher population density in Portuguese local governments' was found to be associated with lower indebtedness (Veiga and Veiga 2014), although the effect of density is not always found to be relevant (Balaguer-Coll, Prior, and Tortosa-Ausina 2015). A significant positive relationship between the size of local population and per capita debt service was also confirmed in the literature (e.g.…”

Section: Variablessupporting

confidence: 52%

“…Consequently, we rely on a proxy variable formed as a summation of external debt loans, domestic debt loans, guarantees and bonds as presented in Figure 2, and used in some research (e.g. Balaguer-Coll, Prior, and Tortosa-Ausina 2015). Summation of all these types of debt in per capita terms represents the dependent variable of the model.…”

Section: Variablesmentioning

confidence: 99%

“…Thus, the model specification reflects the existing literature by using the following independent variables, starting with budget deficit/ surplus 9 (e.g. Benito and Bastida 2004;Balaguer-Coll, Prior, and Tortosa-Ausina 2015) and the size of population (e.g. Benito and Bastida 2004;Bogumil et al 2014;Bittencourt 2015).…”

Section: Model Specificationmentioning

confidence: 99%

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Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina

Halebić

Moćević

2020

South East European Journal of Economics and Business

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Total public debt of ten cantons in the Federation of Bosnia and Herzegovina (FBiH), one of the two entities in BiH, have substantially increased in recent years. Since it is relatively small in nominal terms, this galloping trend have not attracted enough attention of decision makers. If these developments continue in the future, the public debt at cantonal level in FBiH might create serious fiscal problems and become one of central issues for policy makers. This has motivated our investigation of determinants that caused the increase in public debt over the period 2012-2018.We apply a panel regression analysis and investigate how budget deficit, trade balance, unemployment rate, size of population and institutional changes affect public debt. We find that public debt is positively associated with budget deficit but negatively associated with trade balance, the size of population and institutional changes. These findings motivated policy recommendations presented in the paper.

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Section: Variablessupporting

confidence: 52%

Section: Variablesmentioning

confidence: 99%

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Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina

Halebić

Moćević

2020

South East European Journal of Economics and Business

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“…The factors influencing the debt level of regions and municipalities are examined by several authors [13,14,15,16,17,18,19], in the Czech environment [20]. As a rule, they agree that indebtedness can be affected by various factors -especially demographic (population, in some countries migration and immigration), economic (unemployment, economic level of the region, income of the region's population), and political (composition of local government, political-economic cycle).…”

Section: Brief Research On the Related Literaturementioning

confidence: 99%

Global COVID-19 Pandemic and Indebtedness of Municipalities with Extended Power in the Czech Republic

Lajtkepová

2021

SHS Web of Conf.

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Research background: In theory, indebtedness of municipalities is only ever associated with the acquisition of investments. It is advised that indebtedness should be regulated by the state, but there is a risk of limiting investment in local infrastructure. Purpose of the article: According to Act No. 23/2017 Coll., municipalities must regulate their own indebtedness and comply with the fiscal rule on pain of penalty. The aim of this text is to provide an analysis and examine the prospects of compliance with the fiscal rule in 205 municipalities with extended power. The analysis is carried out between 2017 and 2019, the risks of compliance in the following years mainly relate to the emerging economic crisis caused by the COVID-19 pandemic. Methods: Given the subject of the analysis, secondary data was used for the research. Data was taken from the Monitor database operated by the Ministry of Finance of the Czech Republic. The obtained data had been processed using standard statistical methods. Findings & Value added: To date, the indebtedness of municipalities with extended power is not excessive: the mean and median values are still well below the legal limit. Still, there are some municipalities where the legal limit has been exceeded, or whose indebtedness is nearing the limit. In the event of reduced tax revenue, which is to be expected in the coming years, these municipalities will struggle to comply with the fiscal rule. The consequences will include halting or limiting local investment, and/or reducing the quality of local public goods.

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“…A thorough investigation also needs to understand whether there are structural differences in the average cost efficiency between municipalities located in different Spanish regions and provinces. The economic and financial crisis has seriously affected all Spanish public administrations (Balaguer-Coll et al, 2016). However, its impact has not been uniform across territories, since some of them (both regional and local levels of government) have faced higher debt increases along with larger falls in revenues, especially areas hardest hit by the effects of the housing bubble (Portillo Navarro, 2009).…”

Section: Evaluating Cost Efficiency By Regions and Provincesmentioning

confidence: 99%

Evaluating local government performance in times of crisis

Narbón-Perpiñá

Balaguer-Coll

Tortosa‐Ausina

2018

Local Government Studies

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In the recent years of international economic crisis, Spanish local governments have come under increasing pressure to accommodate severe economic restrictions while maintaining (or even increasing) their provision of local public services. This paper aims to analyse overall cost efficiency in Spanish local governments during the period of the economic crisis (2008-2013) which has scarcely been examined to date. To this end, we measure efficiency, for which we consider four different non-parametric methodologies. Moreover, given how problematic it is to precisely define the bundle of services and facilities that municipalities must provide, we compare three different output models in which we consider measures of quantity as well as quality. Our results suggest that Spanish local government efficiency improved over the crisis period 2008-2013 since budget expenditures (inputs or costs) fell while local public services and facilities (outputs) were maintained. We also find evidence of the possible implications of service quality when measuring local governments' cost efficiency, and of structural differences in the average efficiency between municipalities located in different Spanish regions and provinces. Finally, our results confirm that the level and variation of efficiency scores are affected by the approach taken.

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On the Determinants of Local Government Debt: Does One Size Fit All?

Abstract: This paper analyzes the factors that directly influence levels of debt in

Cited by 45 publications

References 53 publications

Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina

Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina

Global COVID-19 Pandemic and Indebtedness of Municipalities with Extended Power in the Czech Republic

Evaluating local government performance in times of crisis

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