The Impact of Maximum Allowable Debt Level of Local Government Units on their Investment Potential

IF 0.5 4区 管理学 Q4 POLITICAL SCIENCE
Ewa Gubernat, H. Kociemska, Bernadeta Dziedziak, Leszek Patrzałek
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Abstract

Keeping local government units’ financial stability to run necessary projects is becoming a severe threat due to the remarkable increase of theirs’ debt level. A question arises whether the application of debt limits excessively restrict municipalities’ investment potential. Using the linear regression model, we proved that increasing the maximum allowable debt level decreases investment potential. We have challenged the relevance of using fiscal rules and presented liberalizing the fiscal rules’ principles to assess the investment potential as an indicator to guarantee optimum use of the local government units’ economic potential from different perspectives.
地方政府单位债务上限对其投资潜力的影响
由于地方政府债务水平的显著上升,维持地方政府财政稳定以运行必要的项目正成为一个严重威胁。随之而来的问题是,债务限制的实施是否过度限制了市政当局的投资潜力。利用线性回归模型证明了最大允许债务水平的增加会降低投资潜力。我们对使用财政规则的相关性提出了挑战,并提出了放宽财政规则的原则,以评估投资潜力作为一个指标,以保证从不同角度优化利用地方政府单位的经济潜力。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
1.10
自引率
25.00%
发文量
31
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