Local Government Debt Management and Budget Stabilization

2015 ◽  
pp. 121-139 ◽  
Author(s):  
Dwight V. Denison ◽  
Zihe Guo
Keyword(s):  
Local Government ◽  
Government Debt ◽  
Debt Management

scholarly journals Research on Spatial Correlation Characteristics and Their Spatial Spillover Effect of Local Government Debt Risks in China

2021 ◽  
Vol 13 (5) ◽  
pp. 2687
Author(s):  
Xing Li ◽  
Xiangyu Ge ◽  
Wei Fan ◽  
Hao Zheng
Keyword(s):  
Local Government ◽  
Spatial Correlation ◽  
Positive Impact ◽  
Balance Sheet ◽  
Spillover Effect ◽  
Government Debt ◽  
Debt Management ◽  
Spatial Spillover ◽  
Division Of Powers ◽  
Spatial Spillover Effect

Scholars have proposed a series of methods, such as “sustainability of local government debt”, to measure local government debt risks. However, these methods have caused a lot of controversy. Based on a macro balance sheet, this study uses an improved “distance to distress” to measure China’s local government debt risks and applies a social network model to identify the spatial correlation characteristics, as well as the spillover effect. The results are as follows: (1) The data show multiple and heterogeneous spatial correlations for China’s local government debt risks; (2) there are some similarities between the subgroups and seven major geographic regions in China. The links among subgroups are randomly distributed and external; (3) the data manifest a “small world”, with a decreasing transitivity since 2014; (4) between these two significant factors, the positive impact of local government competition is more obvious than the division of powers and responsibilities; and (5) the spatial spillover effect of China’s local government debt risks results from the combination of local government competition, the division of powers and responsibilities, and local government intervention. This paper provides a scientific basis for obtaining a deeper understanding of China’s local government debt risks, and puts forward policy recommendations to strengthen China’s debt management.

Does the size of local government debt affect the level of debt of off-budget entities? The case of local government in Korea

2018 ◽  
Vol 86 (2) ◽  
pp. 333-348
Author(s):  
Seong-ho Jeong
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Debt Management ◽  
Public Enterprise ◽  
Accounting System ◽  
Public Enterprises ◽  
Debt Level ◽  
Panel Regressions ◽  
Metropolitan Cities

The rapid growth of debt of off-budget entities is the result of budgetary constraints. When local governments face fiscal stress, with rising debt, they tend to rely on local public enterprise debt to minimize debt limits and budgetary constraints. This study tests how the debt level of local governments affects the debt level of off-budget entities in 16 Korean metropolitan cities and provinces from 2008 to 2013, applying panel regressions. The results assert that as the debt of a local government increases, public enterprise debt increases accordingly. The findings confirm that public enterprises are used to lessen budget pressure by increasing the total public debt. This practice is like concealing local government debt by using off-budget entities, which eventually creates a fiscal illusion. Points for practitioners Off-budget entities are tools for bigger government and larger debt, so it is necessary to control the use of off-budget debt by imposing ceilings on the off-budget debt limit. From a comprehensive debt management perspective, off-budget entities should be used less to pursue government projects. Additionally, a segmented accounting system should be introduced within the off-budget entities.

Electoral Cycles And Local Government Debt Management

2013 ◽  
Vol 39 (1) ◽  
pp. 107-132 ◽  
Author(s):  
Francisco Bastida ◽  
Arielle Beyaert ◽  
Bernardino Benito
Keyword(s):  
Local Government ◽  
Government Debt ◽  
Debt Management ◽  
Electoral Cycles

scholarly journals Planowanie finansowe w zarządzaniu długiem samorządowym - analiza dynamiczna na przykładzie województw samorządowych

2016 ◽  
pp. 105-116
Author(s):  
Marcin Wiśniewski
Keyword(s):  
Local Government ◽  
Financial Planning ◽  
Government Debt ◽  
Debt Management ◽  
Management Process ◽  
Local Authorities ◽  
Methodological Considerations

The article describes the role financial planning, in particular the role of multiannual financial forecasts, in the debt management process in the local government units. Theoretical and methodological considerations are supplemented by study of changes in budget categories related to local government debt, which took place between the multiannual financial forecasts prepared for the years 2013 and 2014. The analysis was performed for all units in general and more specifically for the voivodships. The article postulates that local authorities should ensure greater accuracy and continuity of their financial plans

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