This paper tries to clarify the issues surrounding local authority’s fiscal risk. Main agendas for fiscal risk in local authorities are local debt in General account and liabilities in Local Public Enterprises(LPEs). The paper explains that local fiscal environments are fluctuating and exogenous under the given constraint such as unstable global economy. And, the trend of sub-national fiscal crisis in OECD countries are shown with analysis of fiscal risk across levels of governments.
For the reduction of LPE’s liquidity problems, the paper investigates the relationship between the liabilities of local development enterprises and economic, political, and fiscal variables. The empirical results imply that the fluctuation of macroeconomic variables such as ‘land prices’ may affect the increase of Local development enterprises’ liabilities. Also, the analysis shows that ‘voting rates’ and ‘whether the political party of local representative and dominant council members are coincidence’ might cause an increase in the local fiscal risk. The implication of the empirical results is that that local authorities’ moral hazard using LPEs as Special Purpose Company was not explicitly shown.
- 지방정부 재정활동의 건전성 강화 방안(Local fiscal consolidation in Korea)
- 김현아; 김지영
지방정부 재정활동의 건전성 강화 방안(Local fiscal consolidation in Korea)
지방채와 지방공기업을 중심으로(Local debt and liabilities of local public enterprises)
서울 : 한국조세재정연구원
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|