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DEBT FINANCING OF LOCAL AUTHORITIES IN THE EU MEMBER COUNTRIES

Katerina Zhegova

Abstract

The present paper is intended to study the debt financing of local authorities in the EU member countries for the period of 2013-2016. The empirical estimations have been done via OLS method on a simple regression model. Local debt is a dependent variable. Revenues from local taxes, local expenditures, local budgetary balance as well as the number of municipalities, average municipality’s population and GDP per capita in a country are used as independent variables. The results confirm that local debt was really affected by local taxes, local expenditures and number of municipalities.

 

Keywords

local debt; local taxes; local budgetary balance; local expenditures; number of municipalities; average population and GDP per capita; regression analysis

 

JEL Codes: H62, H71, H72

 

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