Bailouts and austerity

Arbeitspapier

This paper studies with disaggregated budget data how expenditures, revenues, and borrowing evolve in municipalities that receive bailouts. It asks whether higher-level governments enforce austerity measures after bailing out indebted municipalities. The sample consists of 421 municipalities in the German federal state of Hesse over the 1997-2010 period. The results indicate that municipalities cut personnel, construction, and social expenditures, increase tax revenues and property tax rates, and reduce deficits after they receive a bailout from the state government. The state government appears to be both able and willing to enforce austerity after granting a bailout.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: cege Discussion Papers ; No. 212

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: General ; State and Local Borrowing ; Intergovernmental Relations; Federalism; Secession
• Thema: subnational bailouts ; soft budget constraints ; local fiscal policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Baskaran, Thushyanthan
• Ereignis: Veröffentlichung
• (wer): University of Göttingen, Center for European, Governance and Economic Development Research (cege)
• (wo): Göttingen
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/98842
• Letzte Aktualisierung: 20.09.2024, 08:23 MESZ