Governmental accounting, global markets and ideologies: A historical study of state and local practices in the united states

Abstract

This paper examines the interaction between changes in governmental accounting, ideology and global capital markets. Based on a historical analysis from the late 1800s to the turn of the 21st century it provides support for the general hypothesis that the strength and support of global capital markets and pro-market ideologies is positively related to the likelihood of the adoption by governments of accounting methods geared toward exposing full costs and total debt. The analysis also illustrates that governments are more likely to use accounting methods that allow for greater flexibility for spending, borrowing and off balance sheet financing during times when global capital markets and pro-market ideologies are in decline.

Citation

Sacco, J.F. and Stalebrink, O.J. (2010), "Governmental accounting, global markets and ideologies: A historical study of state and local practices in the united states", Journal of Public Budgeting, Accounting & Financial Management, Vol. 22 No. 1, pp. 112-133. https://doi.org/10.1108/JPBAFM-22-01-2010-B006