The determinants of the municipal debt policy in Spain
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2004
Abstract
This paper analyzes the impact of economic, social and political factors on municipal debt behavior. With this aim, we have obtained a stratified random sample of 130 cities during a five-year period. These data have been used to configure a micro panel to obtain accurate estimates and to control for problems such as unobserved heterogeneity. The main conclusion obtained from this process is that non-financial surplus/deficit, financial independence, capital expenditures, and capital revenues are the variables that best explain the indebtedness of this type of entities.
Citation
Benito, B. and Bastida, F. (2004), "The determinants of the municipal debt policy in Spain", Journal of Public Budgeting, Accounting & Financial Management, Vol. 16 No. 4, pp. 492-525. https://doi.org/10.1108/JPBAFM-16-04-2004-B002
Publisher
:Emerald Publishing Limited
Copyright © 2004 by PrAcademics Press