On the determinants of local government debt: Does one size fit all?
This paper analyzes the factors that directly influence levels of debt in Spanish local governments. Specifically, the main objective is to find out the extent to which indebtedness is originated by controllable factors that public managers can influence, or whether it hinges on other variables beyond managers’ control. The importance of this issue has intensified since the start of the crisis in 2007, due to the abrupt decline of revenues and, simultaneously, to the stagnation (or even increase) in the levels of costs facing these institutions face. Results can be explored from multiple perspectives, given that the set of explanatory factors is also multiple. However, the most interesting result relates to the varying effect of each covariate depending on each municipality’s specific debt level, which suggests that economic policy recommendations should not be homogeneous across local governments.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Campus del Riu Sec, 12071 Castellón|
Phone: (34) 964728590-92
Fax: (34) 964728591
Web page: http://www.doctreballeco.uji.es/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ignacio Lago-Peñas & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2011. "The political and economic consequences of decentralization," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 29(2), pages 197-203, April.
- Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010.
"In Search of the 'Economic Dividend' of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK,"
SERC Discussion Papers
0062, Spatial Economics Research Centre, LSE.
- Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2012. "In search of the ‘economic dividend’ of devolution: spatial disparities, spatial economic policy, and decentralisation in the UK," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 30(1), pages 10-28, February.
- Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2011. "In search of the 'economic dividend' of devolution: Spatial disparities, spatial economic policy and decentralisation in the UK," Working Papers 2011-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010. "In search of the 'economic dividend' of devolution: spatial disparities, spatial economic policy and decentralisation in the UK," LSE Research Online Documents on Economics 33560, London School of Economics and Political Science, LSE Library.
- Pike, Andy & Rodríguez-Pose, Andrés & Torrisi, Gianpiero & Tselios, Vassilis & Tomaney, John, 2010. "In search of the ‘economic dividend’ of devolution: spatial disparities, spatial economic policy and decentralisation in the UK," DEMQ Working Paper Series 2010/9, University of Catania, Department of Economics and Quantitative Methods.
- repec:bbe:wpaper:201001 is not listed on IDEAS
- Blais, Andre & Nadeau, Richard, 1992. "The Electoral Budget Cycle," Public Choice, Springer, vol. 74(4), pages 389-403, December.
- R A Cropf & G D Wendel, 1998. "The Determinants of Municipal Debt Policy: A Pooled Time-Series Analysis," Environment and Planning C, SAGE Publishing, vol. 16(2), pages 211-224, April.
- Roger Koenker & Kevin F. Hallock, 2001.
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 143-156, Fall.
- Albert Solé-Ollé & Miriam Hortas Rico, 2008.
"Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities,"
2008/6, Institut d'Economia de Barcelona (IEB).
- Miriam Hortas-Rico & Albert SolÃ©-OllÃ©, 2010. "Does Urban Sprawl Increase the Costs of Providing Local Public Services? Evidence from Spanish Municipalities," Urban Studies, Urban Studies Journal Limited, vol. 47(7), pages 1513-1540, June.
- Albert Solé-Ollé & Miriam Hortas-Rico, 2008. "Does urban sprawl increase the costs of providing local public services? Evidence from Spanish municipalities," Working Papers XREAP2008-10, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2008.
- Bunch, Beverly S, 1991. "The Effect of Constitutional Debt Limits on Stage Governments' Use of Public Authorities," Public Choice, Springer, vol. 68(1-3), pages 57-69, January.
- Fermín Cabasés & Pedro Pascual & Jaime Vallés, 2007. "The effectiveness of institutional borrowing restrictions: Empirical evidence from Spanish municipalities," Public Choice, Springer, vol. 131(3), pages 293-313, June.
- Kiewiet, D Roderick & Szakaly, Kristin, 1996. "Constitutional Limitations on Borrowing: An Analysis of State Bonded Indebtedness," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(1), pages 62-97, April.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Maria Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "Output complexity, environmental conditions, and the efficiency of municipalities," Journal of Productivity Analysis, Springer, vol. 39(3), pages 303-324, June.
- Per Pettersson-Lidbom, 2001. "An Empirical Investigation of the Strategic Use of Debt," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 570-583, June.
- Dickson, Vaughan & Yu, Weiqiu, 1997. "Spending by Canadian Provincial Governments: An Empirical Analysis," Public Finance = Finances publiques, , vol. 52(2), pages 145-60.
- Galli, Emma & Rossi, Stefania P S, 2002. "Political Budget Cycles: The Case of the Western German Lander," Public Choice, Springer, vol. 110(3-4), pages 283-303, March.
When requesting a correction, please mention this item's handle: RePEc:jau:wpaper:2013/16. 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: (María Aurora Garcia Gallego)
If references are entirely missing, you can add them using this form.