Inside Local Governance: How Well Is Debt Managed?

Eymen Errais
Additional contact information
Eymen Errais: Laboratoire de Recherche en Economie Quantitative du D veloppement, FSEGT, University of Tunis El Manar, B.P 248, El Manar II, 2092 Tunis, Tunisia

International Journal of Economics and Financial Issues, 2019, vol. 9, issue 2, 145-153

Abstract: Several debates and concerns about local elections focus on whether local governance can take root in an environment where people have a very low trust in their rulers, and deliver the economic goods: A higher rate of investment, more growth and more jobs. In this paper we aim to understand whether local authorities have the financial means and management skills to face these challenges. More specifically, we address the issue of local debt management and propose a scoring system that rates municipalities' credit quality. Our methodology is based on a mix of quantitative modeling and qualitative analysis. Our data set incorporates all the 264 Tunisian Municipalities and spans a period over 7 years (2010-2016). Our results show that the main quantitative factor predicting good debt management is Net Cash Flow. The model shows strong efficiency and reliable predictive power.

Keywords: Local governance; default risk; debt management; credit risk factors (search for similar items in EconPapers)
JEL-codes: C50 F30 G28 (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/7486/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/7486/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2019-02-18

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().