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Improving Local Governments’ Financial Sustainability by Using Open Government Data: An Application of High-Granularity Estimates of Personal Income Levels in Romania

Author

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  • Vlad-Cosmin Bulai

    (Department of Business and Economics, Faculty of International Business and Economics, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Alexandra Horobeț

    (Department of Business and Economics, Faculty of International Business and Economics, The Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Lucian Belascu

    (Department of Management, Marketing and Business Administration, Faculty of Economic Sciences, “Lucian Blaga” University of Sibiu, 550224 Sibiu, Romania)

Abstract

The availability of open government data has expanded considerably in recent years. This expansion is expected to generate significant benefits not just for increasing government transparency, but also for the economy. The aim of this study is to illustrate the use of open government data in estimating personal income levels for all 3181 municipalities, towns, and communes in Romania. The novelty of our work comes from the high granularity of the estimates obtained. We use tax revenues collected by local governments in Romania on vehicles and buildings owned by natural persons, as well as data on energy subsidies. The classification is conducted using the k-means clustering algorithm. We find three distinct clusters of communities, which we map. The results can benefit both businesses and policymakers. The former can use the income level estimates for market intelligence purposes, while for the latter, these may aid in determining the financial sustainability of local governments and a better allocation of central government resources at the subnational level.

Suggested Citation

  • Vlad-Cosmin Bulai & Alexandra Horobeț & Lucian Belascu, 2019. "Improving Local Governments’ Financial Sustainability by Using Open Government Data: An Application of High-Granularity Estimates of Personal Income Levels in Romania," Sustainability, MDPI, vol. 11(20), pages 1-11, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5632-:d:275872
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    References listed on IDEAS

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    Cited by:

    1. Vicente Pina & Patricia Bachiller & Lara Ripoll, 2020. "Testing the Reliability of Financial Sustainability. The Case of Spanish Local Governments," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    2. Inna Gryshova & Tatyana Shabatura & Stasys Girdzijauskas & Dalia Streimikiene & Remigijus Ciegis & Ingrida Griesiene, 2019. "The Paradox of Value and Economic Bubbles: New Insights for Sustainable Economic Development," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    3. Cristina Raluca Gh. Popescu & Gheorghe N. Popescu, 2019. "An Exploratory Study Based on a Questionnaire Concerning Green and Sustainable Finance, Corporate Social Responsibility, and Performance: Evidence from the Romanian Business Environment," JRFM, MDPI, vol. 12(4), pages 1-79, October.
    4. Francisco Cifuentes-Silva & Daniel Fernández-Álvarez & Jose Emilio Labra-Gayo, 2020. "National Budget as Linked Open Data: New Tools for Supporting the Sustainability of Public Finances," Sustainability, MDPI, vol. 12(11), pages 1-12, June.

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