Determinants of Local Governments’ Transparency in Times of Crisis: Evidence From Municipality-Level Panel Data

2015 ◽  
Vol 50 (4) ◽  
pp. 527-554 ◽  
Author(s):  
Francisca Tejedo-Romero ◽  
Joaquim Filipe Ferraz Esteves de Araujo
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Random Effect ◽  
Political Factors ◽  
Public Resources ◽  
Electoral Turnout ◽  
The Global Financial Crisis ◽  
Fiscal Pressure

The global financial crisis has had an impact on Local Government forcing it to be more transparent in management of public resources. This article examines theoretically and empirically the determinants of the levels of transparency in Local Governments based on the agency and legitimacy theories. For the purpose of this study, the analysis is based on the Spanish municipalities over a period of 4 years, between 2008 and 2012. Running a random effect panel data model, our results showed that transparency is associated with economic and political factors. Unemployment rate, gender, electoral turnout, and political strength have a significant effect on the level of transparency. For other variables like investment and fiscal pressure, we did not find significant evidence of their effect on the level of transparency. We conclude that the factors that best explain the variation in the level of transparency in the period of crisis are associated with political factors.

NONLINEAR PANEL DATA MODELS WITH DISTRIBUTION-FREE CORRELATED RANDOM EFFECTS

2021 ◽  
pp. 1-25
Author(s):  
Yu-Chin Hsu ◽  
Ji-Liang Shiu
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Conditional Distribution ◽  
Unobserved Heterogeneity ◽  
Random Effect ◽  
Data Models ◽  
Panel Data Model ◽  
Panel Data Models ◽  
Likelihood Functions ◽  
Correlated Random Effects

Under a Mundlak-type correlated random effect (CRE) specification, we first show that the average likelihood of a parametric nonlinear panel data model is the convolution of the conditional distribution of the model and the distribution of the unobserved heterogeneity. Hence, the distribution of the unobserved heterogeneity can be recovered by means of a Fourier transformation without imposing a distributional assumption on the CRE specification. We subsequently construct a semiparametric family of average likelihood functions of observables by combining the conditional distribution of the model and the recovered distribution of the unobserved heterogeneity, and show that the parameters in the nonlinear panel data model and in the CRE specification are identifiable. Based on the identification result, we propose a sieve maximum likelihood estimator. Compared with the conventional parametric CRE approaches, the advantage of our method is that it is not subject to misspecification on the distribution of the CRE. Furthermore, we show that the average partial effects are identifiable and extend our results to dynamic nonlinear panel data models.

scholarly journals ANALISANDO O COMPORTAMENTO DOS GASTOS PUBLICOS NOS MUNICÍPIOS CEARENSES

2014 ◽  
Vol 18 (1) ◽  
pp. 85 ◽  
Author(s):  
José Geraldo Araújo Correia ◽  
Guilherme Irffi Diniz ◽  
Rodolfo Ferreira Ribeiro da Costa
Keyword(s):  
Panel Data ◽  
Public Administration ◽  
Local Governments ◽  
Income Elasticity ◽  
Random Effect ◽  
Public Spending ◽  
The State ◽  
The Public

O objetivo deste trabalho é testar a hipótese de flypaper na administração pública municipal do estado do Ceará.Para tal, foi construído um painel de dados com informações sobre os gastos, a arrecadação, a população e as transferências constitucionais para os 184 municípios cearenses entre 1999 e 2009. Tais informações foram extraídas juntoà Secretaria do Tesouro Nacional e ao Instituto Brasileiro de Geografia e Estatística. A metodologia utilizada remete-se aomodelo de dados em painel com efeito aleatório. Os resultados destacam que a elasticidade gasto-renda supera aelasticidade gasto-transferência e, portanto, as administrações municipais estão isentas da prática descrita pelo efeitoflypaper.Palavras-chave: Flypaper; gasto; transferência; dados em painelANALYZING THE BEHAVIOR OF THE PUBLIC SPENDING IN CEARÁ’S CITIESAbstract: The aim of this study was to test the hypothesis flypaper in municipal public administration in the state of Ceará.To this end, was built a panel with information on expenditures, revenues, population and constitutional transfers to the 184municipalities of Ceará between 1999 and 2009. Such information was extracted together with the National Treasury and theBrazilian Institute of Geography and Statistics. The methodology used is referred to the panel data with random effect model.The results highlight that the elasticity spending exceeds income-elasticity worn-transfer and, therefore, local governments are exempt from the practice described by flypaper effect.Keywords: Flypaper, expenditure, transfer, panel data.

Austerity and State Rescaling

2021 ◽  
pp. 71-90
Author(s):  
Jonathan S. Davies
Keyword(s):  
Financial Crisis ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Local State ◽  
Fiscal Rules ◽  
Place Marketing ◽  
Political Capacity ◽  
Revenue Streams ◽  
The Global Financial Crisis ◽  
National Governments

The story of austerity is entwined with experiments in city-regionalism, authoritarianism, fiscal and political centralisation and downloading or scalar dumping. Interpenetrating institutional, territorial and scalar restructurings have significant implications for politics and governing cultures, and relations between local states and citizens. This chapter focuses on the evolving powers and liabilities accruing to sub-national governments in the period since the Global Financial Crisis, read through revenue streams, fiscal rules and changes to spatial and jurisdictional capacities. The key finding across the eight cities is that municipalities face a variable and increasing mix of upward and downward constraints undermining their political capacity. Considered from the standpoint of governability, state rescaling in the period since the Crisis has tended to consolidate disciplinary neoliberalism, creating additional pressures on local governments to reinforce their tax bases through place-marketing. These processes also make cities more governable for national and provincial elites, pushing local state mechanisms into closer alignment with the administrative and financial priorities of upper tier apparatuses.

After The Global Crisis, Is It Globalization or Globalonelization?

2015 ◽  
pp. 287-307
Author(s):  
Ayfer Gedikli ◽  
Seyfettin Erdoğan ◽  
Durmuş Çağrı Yıldırım
Keyword(s):  
Emerging Economies ◽  
Financial Crises ◽  
Local Governments ◽  
World Wide ◽  
Global Financial Crisis ◽  
Economic Consequences ◽  
Global Crisis ◽  
The World ◽  
The Global Financial Crisis

Since the rise of globalization which has abolished the role of nation-state gradually, the world has been increasingly dealing with world-wide pandemics and multi-regional financial crises. The nature of the Global Financial Crisis has made it clear that financially integrated and globalized markets which are poorly regulated with lax supervision, can pose significant risks, with disastrous economic consequences. Did global unfairness and loose monetary policy or lack of common fiscal policy deepen the crisis? Is globalization responsible from the loss of power of local governments on their economies? Finally, can “deglobalization” be an alternative solution for the emerging economies? The answers of these questions are even more crucial after the “FED tapering”. In this context, this chapter discusses the future of financial globalization with respect to its effects on the emerging economies during the global crisis.

scholarly journals The 2011 Commonwealth Local Government Conference: Energising Local Economies: An Overview

1970 ◽  
Author(s):  
Sue Rhodes
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Local Economic Development ◽  
Local Economies ◽  
Financial Difficulties ◽  
Economic Climate ◽  
The Global Financial Crisis ◽  
The Right ◽  
The Impact

In the current economic climate, creating the right environment for local enterprise, inward investment, and business and skills development, is an important factor in ensuring the prosperity and wellbeing of local communities. The impact of the global financial crisis has not been uniform across the Commonwealth and countries are using different strategies to overcome their financial difficulties. Local government increasingly plays an important part in this. More and more local governments in countries across the Commonwealth have responsibilities and powers for local economic development: in some countries local authorities can already show how their policies and actions are helping energise their local economies, while in other countries local councils are just beginning to get to grips with these responsibilities.

scholarly journals Hiving off the non-essential: analysing which public organizations outsource administrative overhead

2017 ◽  
Vol 85 (2) ◽  
pp. 228-246
Author(s):  
Jan Boon ◽  
Koen Verhoest ◽  
Bruno De Borger
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Private Sector ◽  
Global Financial Crisis ◽  
Public Organizations ◽  
Tobit Model ◽  
Effect Sizes ◽  
Organizational Size ◽  
The Global Financial Crisis ◽  
Insight Into

This study contributes to our understanding of the characteristics of public organizations that are more likely to outsource administrative overhead. Despite the climate of ongoing crisis that urges public organizations to focus their resources on core tasks, little is known about the characteristics of organizations that hive off the delivery of non-essential administrative overhead processes to the private sector. This study runs a panel data Tobit model to test whether different effect sizes of structural, institutional and political characteristics are found regarding the probability of outsourcing and the degree of outsourcing of administrative overhead. We find that organizational size, formal autonomy, inertia and time matter for understanding the outsourcing of public organizations. Points for practitioners Across the globe, governments have turned to a rationalization of administrative overhead in response to austerity demands posed by the global financial crisis. The present study shows that large differences exist between organizations in terms of their propensity to turn to the private sector – one of the classic recipes for achieving efficiency gains – for the delivery of administrative overhead, and helps practitioners gain insight into the determinants of administrative overhead outsourcing.

scholarly journals THE CONVERGENCE TEST OF INDONESIA BANKING INEFFICIENCY: DO MACROECONOMIC INDICATORS MATTER?

2018 ◽  
Vol 21 (1) ◽  
pp. 123-137
Author(s):  
Rudi Purwono ◽  
Mohammad Zeqi Yasin
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Gross Domestic Product ◽  
Global Financial Crisis ◽  
Fiscal Stimulus ◽  
Panel Data Estimation ◽  
Convergence Test ◽  
Macroeconomic Indicators ◽  
The Global Financial Crisis ◽  
Data Estimation

This paper analyzes the inefficiency convergence of Indonesian banks using StochasticFrontier Analysis and panel data estimation, covering the period after financial crisis2008 until 2017. This paper also investigates the determinant of this inefficiencyimplying the convergence. To estimate the inefficiency rate, proxied by price ofloan, this paper uses three inputs including price of labor, price capital, and price offund. Our analysis shows that during 2008-2017 the inefficiency score converged ata speed of 26.2 %. Furthermore inflation, gross domestic product, and exchange ratesignificantly affect the growth of inefficiency convergence. This paper contributes tothe empirical literatures particularly on banking research. Overall, the findings implythat policymakers can mitigate the effects of the global financial crisis by loweringinterest rate, providing fiscal stimulus, as well as protecting the poorest from financialdeterioration.

scholarly journals Analysis of Factors Affecting Economic Growth in Bangka Belitung Province, Indonesia with LSDV And FGLS Methods

2018 ◽  
Vol 2 (1) ◽  
pp. 24
Author(s):  
Darman Saputra
Keyword(s):  
Panel Data ◽  
Local Governments ◽  
Capita Income ◽  
Oil And Gas ◽  
Random Effect ◽  
Least Square ◽  
Per Capita Income ◽  
Processing Industry ◽  
Factors Affecting ◽  
Per Capita

The Least Square Dummy Variable (LSDV) method can be used to estimate parameters in the panel data regression model incomplete one-way fixed effect. To produce the best model with GDP data of GRASB. Variables that do not occur heteroscedasticity and models that meet the smallest sum square of error is the variable Mining and Processing Industry, this variable affects the per capita income. The Feasible Generalized Least Square (FGLS) method can be used to estimate the regression parameters for incomplete panel data for a one-way random effect. In this model produce the best model with non-oil and gas GRDP data. The variables that fulfill it are the processing Industry, service, and agriculture of Forestry and Fishery.  Therefore looking at the above model can be concluded non-oil and Gas GRDP has three factors that affect per capita income in Bangka Belitung. This should be a reference of local governments to further improve the quality or production in agriculture and services because this potential is more promising for the future. Software used to analyze data in this paper is with R.

scholarly journals Pengaruh belanja daerah terhadap pertumbuhan ekonomi dan kemiskinan Kabupaten/Kota di Provinsi Jambi

2021 ◽  
Vol 10 (2) ◽  
pp. 107-122
Author(s):  
Rizky Airy Putri ◽  
Zamzami Zamzami ◽  
Selamet Rahmadi
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Panel Data ◽  
Analytical Method ◽  
Data Model ◽  
Local Governments ◽  
Panel Data Model ◽  
Simple Regression Analysis ◽  
Poverty Levels ◽  
Simple Regression

The ability of local governments to manage finances is stated in the regional revenue and expenditure budget (APBD). The higher the regional expenditure allocation in the APBD, the higher the level of economic growth to reduce or alleviate the level of poverty. The variables that affect economic growth and poverty include regional expenditure. This study aims to determine the effect of regional spending on economic growth and poverty in regencies/cities in Jambi province partially or collectively. The analytical method used is simple regression analysis with a panel data model. The results showed that regional spending has a negative and partially insignificant effect on economic growth. Regional expenditure has a positive and minor impact on poverty levels in districts/cities in Jambi Province. Keywords: Local government, Economic growth, Poverty.

Sign in / Sign up

Export Citation Format

Share Document