IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i21p6008-d281330.html
   My bibliography  Save this article

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

Author

Listed:
  • 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, Open Access Journal, vol. 11(21), pages 1-18, October.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6008-:d:281330
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/21/6008/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/21/6008/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Enrico Bracci & Christopher Humphrey & Jodie Moll & Ileana Steccolini, 2015. "Public sector accounting, accountability and austerity: more than balancing the books?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 28(6), pages 878-908, August.
    2. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    3. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. Bruce R. Conard, 2013. "Some Challenges to Sustainability," Sustainability, MDPI, Open Access Journal, vol. 5(8), pages 1-14, August.
    6. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    7. José Luis Zafra-Gómez & Antonio Manuel López-Hernández & Agustin Hernández-Bastida, 2009. "Developing an alert system for local governments in financial crisis," Public Money & Management, Taylor & Francis Journals, vol. 29(3), pages 175-181, May.
    8. Ant�nio Afonso & João Tovar Jalles, 2015. "Fiscal sustainability: a panel assessment for advanced economies," Applied Economics Letters, Taylor & Francis Journals, vol. 22(11), pages 925-929, July.
    9. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    10. Sajjad Haider & Guoxian Bao & Gary L. Larsen & Muhammad Umar Draz, 2019. "Harnessing Sustainable Motivation: A Grounded Theory Exploration of Public Service Motivation in Local Governments of the State of Oregon, United States," Sustainability, MDPI, Open Access Journal, vol. 11(11), pages 1-30, June.
    11. Xiaohua Chen & Zaigui Yang, 2019. "Stochastically Assessing the Financial Sustainability of Individual Accounts in the Urban Enterprise Employees’ Pension Plan in China," Sustainability, MDPI, Open Access Journal, vol. 11(13), pages 1-20, June.
    12. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    13. Mijoo Lee & In Tae Hwang, 2019. "The Effect of the Compensation System on Earnings Management and Sustainability: Evidence from Korea Banks," Sustainability, MDPI, Open Access Journal, vol. 11(11), pages 1-24, June.
    14. Alexander V. Balatsky & Galina I. Balatsky & Stanislav S. Borysov, 2015. "Resource Demand Growth and Sustainability Due to Increased World Consumption," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-11, March.
    15. Rhys Andrews, 2015. "Vertical consolidation and financial sustainability: evidence from English local government," Environment and Planning C, , vol. 33(6), pages 1518-1545, December.
    16. Mirela Ionela Aceleanu & Andreea Claudia Serban & Cristina Burghelea, 2015. "“Greening” the Youth Employment—A Chance for Sustainable Development," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-21, March.
    17. David Heald & Ron Hodges, 2015. "Will “austerity” be a critical juncture in European public sector financial reporting?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 28(6), pages 993-1015, August.
    18. Andrés Navarro-Galera & Manuel Pedro Rodríguez-Bolívar & Laura Alcaide-Muñoz & María Deseada López-Subires, 2016. "Measuring the financial sustainability and its influential factors in local governments," Applied Economics, Taylor & Francis Journals, vol. 48(41), pages 3961-3975, September.
    19. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    20. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    financial sustainability; intergenerational Equity; influential factors; local governments; regional governments;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6008-:d:281330. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.