Katerina Zhegova


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.



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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