Sustainable budgeting and financial balance: Which lever will you pull?
| Autor: | Giovanna D’Inverno, Francesco Vidoli, Kristof De Witte |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: |
Difference-in-differences
EFFICIENCY Information Systems and Management General Computer Science TAX State and Local Taxation h72 - State and Local Budget and Expenditures Management Science and Operations Research Total Factor Industrial and Manufacturing Engineering Cost efficiency FRONTIER ENDOGENEITY and Revenue Balanced budget rules Cost Capital Subsidies and Multifactor Productivity Capacity h71 - State and Local Taxation PERFORMANCE POLICY Production MODEL National Budget Budget Systems Local government performance Modeling and Simulation Quantitative Policy Modeling RULES State and Local Budget and Expenditures c54 - Quantitative Policy Modeling OR in government |
| Popis: | During the past few decades, countries have experienced a remarkable increase in local expenditure levels to address rising local needs. However, the limited availability of financial resources, exacerbated first by the 2008 financial crisis and then by Covid19 crisis, has called for budget restrictions usually imposed by higher levels of government. In this paper, we evaluate the impact of a balance budget rule enforcement, exploring its effect on the local government cost efficiency and, in particular, considering the complex trade-off between efficiency and equity. Specifically, our identification strategy considers the exogenous introduction of a new budget balance rule that requires local governments to respect both an annual and a longer-term equilibrium criterion. The difference-in-differences analysis builds on a rich panel dataset covering all the public functions. We find that, on average, the budget rule enforcement exerted a positive effect on local government efficiency.(c) 2023 Elsevier B.V. All rights reserved. |
| Databáze: | OpenAIRE |
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