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Debt Financing Of Local Authorities In The Eu Member Countries

Author

Listed:
  • Katerina Zhegova

    (South-West University "Neofit Rilski", Blagoevgrad)

Abstract

The present paper is intended to study the debt financing of local authorities in the EU member countries for the period of 2013-2016. The empirical estimations have been done via OLS method on a simple regression model. Local debt is a dependent variable. Revenues from local taxes, local expenditures, local budgetary balance as well as the number of municipalities, average municipality’s population and GDP per capita in a country are used as independent variables. The results confirm that local debt was really affected by local taxes, local expenditures and number of municipalities.

Suggested Citation

  • Katerina Zhegova, 2019. "Debt Financing Of Local Authorities In The Eu Member Countries," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 7(1), pages 57-63.
    • Handle: RePEc:neo:epjour:v:7:y:2019:i:1:p:57-63
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    References listed on IDEAS

    as
    1. John Ashworth & Benny Geys & Bruno Heyndels, 2005. "Government Weakness and Local Public Debt Development in Flemish Municipalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(4), pages 395-422, August.
    2. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "On the determinants of local government debt: Does one size fit all?," Working Papers 2013/16, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Erwin Bastiaens & Bruno De Borger & J. Vanneste, 2001. "Expenditure and taxation effects of local public debt and unconditional grants: evidence from Flemish municipalities," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 17.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    local debt; local taxes; local budgetary balance; local expenditures; number of municipalities; average population and GDP per capita; regression analysis;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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