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The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments

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  • María Deseada López Subires

    (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • Laura Alcaide Muñoz

    (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • Andrés Navarro Galera

    (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

  • Manuel Pedro Rodríguez Bolívar

    (Department of Accounting and Finance, University of Granada, Campus Universitario de Cartuja, s/n, 18071 Granada, Spain)

Abstract

In recent years, financial sustainability (FS) of public policies has become a key concept in all governmental levels due to the need for ensuring public services delivery for future generations. Prior research has been focused on the financial sustainability in local governments (LGs) although its findings suggested the need to analyze this magnitude in other levels of government because political decisions could be different in each type of public entity. So, FS has also become very relevant in the Regional Government (RGs) context because their public policies affect not only at the regional level but also the local one. Therefore, from a comparative approach, this paper seeks to identify socio-demographic factors which could influence on the financial sustainability, in the Spanish context for both LGs vs. RGS in order to establish public policies to make sustainable public goods and services. Findings demonstrate that differences in influential factors between these two levels of public administration exist: factors such as population size and foreign population could have an effect on the financial sustainability of both governmental levels while the unemployment rate, dependent population, and population density affect differently on LGs and RGs.

Suggested Citation

  • María Deseada López Subires & Laura Alcaide Muñoz & Andrés Navarro Galera & Manuel Pedro Rodríguez Bolívar, 2019. "The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments," Sustainability, MDPI, vol. 11(21), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6008-:d:281330
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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. Serena Santis, 2020. "The Demographic and Economic Determinants of Financial Sustainability: An Analysis of Italian Local Governments," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    3. Ge Gao & Xiuting Li & Xiaoting Liu & Jichang Dong, 2021. "Does Air Pollution Impact Fiscal Sustainability? Evidence from Chinese Cities," Energies, MDPI, vol. 14(21), pages 1-16, November.
    4. Lotta-Maria Sinervo, 2020. "Financial Sustainability of Local Governments in the Eyes of Finnish Local Politicians," Sustainability, MDPI, vol. 12(23), pages 1-16, December.

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