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The intent of this research is determine the extent to which selfreported measures of fiscal condition are consistent with commonly identified measures of fiscal condition using secondary financial data. While the field of government finance has amassed a lengthy list of research on fiscal condition and fiscal stress assessment, there remains a gap in the research on the extent to which practitioners' perceptions of fiscal stress are consistent with such measures. Our results suggest that there is limited evidence of a relationship between self-reported and objective measures of fiscal condition

This paper analyzes the impact of economic downturns on the revenue and expense sides of city financing for the period 2003 to 2009 using a convenience sample of the audited end of year financial reports for thirty midsized US cities. The analysis focuses on whether and how quickly and how extensively revenue and spending directions from past years are altered by recessions. A seven year series of Comprehensive Annual Financial Report (CAFR) data serves to explore whether citiesʼ revenues and spending, especially the traditional property tax and core functions such as public safety and infrastructure withstood the brief 2001 and the persistent 2007 recessions? The findings point to consumption (spending) over stability (revenue minus expense) for the recession of 2007, particularly in 2008 and 2009.

This paper aims to analyze the effectiveness of macroprudential and fiscal policies taken from a sample of ten advanced economies in relation to the mitigation of real-estate and credit bubbles by comparing their performance.

This comparison is elaborated with a seemingly unrelated regression methodology, which allows the assessment of individual countries’ performance and improves the estimation of the dependent variables versus an individual regression.

The analysis concludes that countercyclical measures have been more effective to control the growth of household debt. Furthermore, this study validates that macroprudential measures focused on the residential sector meet their objective of controlling the growth of house prices, whereas those macroprudential measures with more generic targets are effective to control the growth of household debt.

As opposed to previous panel-regression studies, which have analyzed the performance of macroprudential and fiscal measures in generic terms, this paper compares the performance of these tools in ten advanced economies. Based on the analysis performed, several recommendations are derived for policymakers.

Identifying tools for predicting fiscally distressed local governments has received heightened attention following the Great Recession of 2007–2009. Despite the recent expansion of research, measuring fiscal distress is challenging because of the operational complexity associated with the term. Furthermore, many local governments are too small to produce a Comprehensive Annual Financial Report (CAFR), upon which many empirical studies of fiscal condition or fiscal distress are based. This study designs a parsimonious tool for identifying fiscally distressed entities based on existing literature. The authors examine Nebraska's 93 counties over a nine-year period (from 2010 to 2018). In order to ensure the validity of our tool, we replicate two well-known empirical approaches of assessing local fiscal condition and compare the results with ours. The authors find nearly all counties in Nebraska to be free from fiscal distress in the past decade. However, since most counties in Nebraska have small populations and are far from urban centers, they may still be vulnerable to future fiscal shocks and may need to closely monitor their fiscal condition.

The authors offer a parsimonious method for assessing the existence of fiscally distressed counties. They select predictors of fiscal distress based on two criteria. First, for the purpose of this study, the authors use financial information that is uniform, easily accessible and does not rely on CAFRs. In order to make their model parsimonious and replicable, the authors only consider factors that have the most decisive effects on local fiscal conditions. Second, the authors draw on indicators that have been consistently supported by previous studies (e.g., Kloha et al., 2005; Gorina et al., 2018). The authors test the validity of this approach using correlation analysis and regression modeling, similar to Wang et al. (2007).

The authors’ fiscal distress measure shows encouraging signs. Results show that all but Brown's model are highly correlated. The decile and standard deviation models have the strongest correlation (r = 0.955, p < 0.01). These two models are also significantly associated with Kloha et al.'s model. Their correlation coefficients are 0.812 and 0.830, respectively. Consistent with Wang et al. (2007), the authors find modest associations between our fiscal measures and socioeconomic measures.

Limitations include questions of generalizability – we are only studying Nebraska counties. The extent to which the findings are generalizable to counties in other states remains to be seen. We advise readers and policymakers to bear in mind that at this point, there is no perfect way to measure local fiscal condition or fiscal distress. Specifically, with our model, the foremost advantages of parsimony are data accessibility and replicability. However, unlike other existing tools that consider dozens of indicators, our tool bears the cost of not employing a more comprehensive perspective that may be required to capture a full picture of local fiscal condition.

The purpose of this research was to construct and present a parsimonious way of identifying local fiscal distress that is easily replicated and applied in practice. The challenges were operational – both in terms of definition and measurement. Fiscal distress is a nebulous concept that can vary based on the researcher's intent. Our chosen set of indicators have two characteristics: accessibility of financial information and consistency with past studies. Thus, we assess two of the four dimensions of solvency: budgetary solvency and long-run solvency. The authors suggest that this effort should not be used as a tool by state lawmakers to accuse and judge local governments. Instead, it should be used to assist local governments as Iowa and Colorado do. The findings could be the beginning of a conversation between the state and local governments to determine the best course(s) of action. As previously mentioned, there are many causes of fiscal distress and poor decision-making is not very common. Looking into the future, the authors expect more local governments to become fiscally distressed and the primary cause would be economic/demographic change. Since many local governments in Nebraska have very small populations and are far from the urban centers of Omaha and Lincoln, they might be vulnerable to future fiscal shocks. Thus, state lawmakers need to begin considering strategies to deal with local fiscal distress. The authors do have limitations in measurement. However, if used appropriately, this research can add value to the discussion of managing local government fiscal distress in Nebraska and other similar states.

While the analysis finds little fiscal distress currently in Nebraska, there is concern that with population migration to the urban areas and the “graying” of the state, local governments in rural areas (the vast majority in Nebraska) could face more serious issues in future years. A recent study showed that local fiscal condition is negatively associated with the distance from the municipality to the urban centers of Omaha and Lincoln (Maher et al., 2019). These spatial effects could be further exacerbated in a state that ranks near the bottom in financial support of local governments and policy makers are committed to “controlling” property taxes.

This study, while building on prior work, is unique in that it focuses on counties as opposed to municipalities, which are the most common units of analysis. The authors also offer a model for assessing fiscal distress in a state that currently does not have state-level systems to monitor local finances. Finally, rather than relying on audited annual financial reports which would disqualify many smaller local governments, the authors offer a parsimonious tool that is easily replicated and can be used by all local governments that submit uniform financial reports to their states.

The assignment of targets to instruments in developing countries cannot satisfactorily follow any simple universal rule. Which approach is appropriate is influenced by whether the economy is dominated by primary exports, by the importance of the domestic bond market and bank credit, by the extent of existing restriction in foreign exchange and financial markets, by the presence or absence of persistent high inflation, and by the existence or non‐existence of an active international market in the country's currency. Eighteen observations and maxims on stabilisation policy are tentatively drawn (pp. 64–8) from the material reviewed, and the maxims are partly summarised (pp. 69–71) in a schematic assignment, with variations, of targets to instruments.

The official authorities have established several action plans including fiscal support measures to help micro, small and medium enterprises (MSMEs) counter the negative repercussions of COVID-19. In this regard, the purpose of this research is to critically assess the recent fiscal policies endeavoured by the Mauritian authorities in response to COVID-19, to assess the awareness and perception of some local MSMEs of these initiatives, to investigate the extent to which these MSMEs have benefited from them and also, to suggest recommendations to the Mauritian authorities on how to enhance the existing framework to ensure sustainable and equitable development.

This study has adopted both the quantitative and qualitative research methods. Primary data were obtained by conducting a survey of some Mauritian MSMEs, and secondary data were obtained by referring to laws and policy papers on the research topic. Some statistical tests were performed using SPSS software on the primary data to illustrate the research findings.

Despite the laudable initiatives, the survey conducted for this research demonstrates that MSMEs in Mauritius have a moderate awareness of these fiscal support measures. Furthermore, upon being asked whether they have availed of these tax incentives, again a moderate mean average was derived which implies that not all MSMEs have fully benefited from fiscal support to help them in countering the negative effects of COVID-19.

At present, this study will be amongst the first academic writings on the effectiveness of the fiscal measures undertaken by the Mauritian authorities to deal with issues entailed by the COVID-19. The study is carried out with the aim of combining a large amount of empirical, theoretical, and factual information that can be of use to various stakeholders and not only to academics.

This article examines the preliminary impact of the Sars-CoV-2 pandemic on India's economic and budgetary landscape – the most affected developing country from the first wave of the pandemic. It also includes a discussion of the monetary and fiscal responses adopted and the challenges faced in formulating the response to the pandemic.

Using high-frequency economic and fiscal indicators, this article evaluates the economic impact of the pandemic on the Indian economy. Further, it uses data from government sources and news to highlight the measures adopted at the national and subnational level in response to the pandemic.

The difficult economic conditions prior to the pandemic limited the fiscal space available to the government. As a result, the national and subnational governments have been cautious of accumulating excessive debt and have primarily responded with liquidity-enhancing measures, in addition to some fiscal measures for the most vulnerable. Overdependence on consumption taxes has led to unprecedented revenue shortfalls prompting the exploration of new avenues for revenue generation and implementation of austerity measures – some of which may be counterproductive in the long run.

The paper highlights the policy response of the largest democracy that has been hit hard by the pandemic. It also highlights various institutional and resource constraints that influenced the policies adopted. India's experience in responding to the virus could provide lessons for other developing countries.

Status of fiscal health of local governments helps in determining planned budget and realistic action plan for citizens’ wellbeing. This paper aims to assess the fiscal health of local governments in Bangladesh.

Using data from 18 south-western municipalities of Bangladesh during the fiscal year 2018–19, this research measures fiscal health by applying Wang, Dennis and Tu’s solvency test and Brown’s Ten-Point Test.

The result shows that one-tenth of the entire municipalities are endowed with better position, whereas almost 39 percent of municipalities are in the worst situation and nearly 50 percent of municipalities are in the average category. Because of having limited liabilities, the municipalities are endowed with more than enough cash solvency and reasonable level of long-run solvency. The key problems are that budgetary solvency of all municipalities is not satisfactory, and service expenses are more than their revenue generation. This study suggests improving the financial capabilities of the municipalities through properly using their resources, generating loans, and claiming a need-based budget from the central government.

The paper investigates the status of fiscal solvency of local governments in Bangladesh in a new dimension. The findings might be helpful to policymakers in budgeting for development initiatives of local governments in Bangladesh so that citizens’ better wellbeing is ensured.

This paper aims to develop a compound measure, which is fiscal vulnerability index, provides early warning signals of fiscal sustainability problems for Türkiye's economy.

The index is constructed using twelve distinct fiscal indicators and applying the portfolio method, which considers the time-varying cross-correlation structure between the subindices.

Dynamics of the fiscal vulnerability index indicate that it accurately predicts to the well-known fiscal crisis occurring in Türkiye's recent history. As a result, such a compound measure should be used in the early identification of fiscal vulnerability in Türkiye.

The main contribution of this paper, relative to existing papers, is that a fiscal vulnerability index was constructed by employing the most contemporaneous method and evaluating its performance in terms of capturing historical stress periods.

Since regaining its independence, the Estonian government has followed policies of fiscal consolidation when responding to economic crises. Its response to the COVID-19-crisis has been quite different – it has authorized additional expenditures, cut taxes and incurred considerable debt. This paper gives an overview of the budgetary measures adopted and explores the question: why was it different this time?

The authors draw upon policy documents to zoom in on the main political, institutional and economic factors that help to explain Estonia's departure from extreme fiscal conservatism in the midst of the global pandemic.

The authors found the key political factors to be the party composition of the government, policy diffusion and policy learning. Key economic factors included Estonia's very low level of debt prior to the crisis and credit market advantages gained from Eurozone membership.

Estonia presents an interesting case because in all previous crises it responded with fiscal consolidation, whereas it is now responding with extensive fiscal stimulus.