PhDr. Lenka Šťastná Ph.D.


Field of interest: Local public finance
Membership: European Economic Integration and Economic Policy, Internal


Office: 311
Email: stastna [AT] fsv [DOT] cuni [DOT] cz
Phone: 222 112 309
Available: By appointment

More information


Course supervisor

JEB104 - Microeconomics I


JEB104 - Microeconomics I

PhD study

Tutor: prof. RNDr. Ing. František Turnovec CSc.

Studying from: 2006
PhDr examination: 11/2006
Final exam: 06/2008
Dissertation Proposal defence: 15.6.2010
Dissertation defence: 15.9.2011

Current work:

Dissertation topic:
Three essays on local public finance

Disertation abstract:
The dissertation consists of three essays, the first one being entirely theoretical and
the other two empirical, analyzing a sample of Czech municipalities with extended powers.

The first essay Inefficient Centralization of Imperfect Complements extends the literature on tradeoff between centralized and decentralized provision of local public goods. It follows Besley and Coate (2003) framework that allows for non-uniform provision in the centralization but points out to different potential drawbacks of centralization. From the point of view of political economy, there is a potential conflict of interest between citizens in different jurisdictions, as the costs are shared in a centralized system and voters may have incentive to strategically
delegate their legislature. Contrary to Besley and Coate (2003) setting with local public spending being substitutes, our theoretical model analyzes the case when local public spending in two symmetric regions are imperfect complements. We allow for strategic delegation when a voter
intentionally votes for a politician whose preferences do not coincide with those of the voter. Additionally, we consider the case with in-kind transfers, used to support local public goods production in the other region.

The second essay Spatial Interdependence of Local Public Expenditures is motivated by the research on local governments' behavior, especially yardstick and expenditure competition. It aims to test fiscal interactions among local governments in the Czech Republic. Fiscal interactions
among local governments can be driven by various effects: (i) spillover effects, when residents benefit or suffer from the public goods provided in a neighboring region; (ii) competition, when municipalities aim to attract residents and businesses to their region; (iii) mimicking, driven by yardstick competition or by incomplete information of councils about costs or the demand for public goods; (iv) and due to cooperation because neighboring municipalities can be involved in joint projects.

The third essay Local Governments Efficiency evaluates cost efficiency of Czech municipalities in period 2003--2008 and aims to find key determinants of inefficiency. Efficiency is measured through indicators of the provision of local services. The data envelopment analysis and the stochastic frontier analysis are employed, and scores are compared under alternative specifications. Additionally, robust strong and weak performers are detected. The determinants that robustly increase inefficiency are population size, distance to the regional center, share of university-educated citizens, capital expenditures and subsidies per capita, the share of self-generated revenues, and the share of left-wing representatives in local council. On the other hand, party concentration and the voters' involvement increases efficiency. The analysis is conducted also for the period 1994--1996, where political variables appear to influence inefficiency in a structurally different way. From comparison of the two periods, we obtain that small municipalities improve efficiency significantly more than large municipalities.

Optional courses:


Organisation Memberships

Česká společnost ekonomická


2001-04 bachelor in economics IES FSV UK
2004-06 master in economics, IES FSV UK
2004 - Aarhus University, Denmark (Erasmus)
2008 - Summer School in Public Economics. Evaluation of the Effectiveness and Efficiency of Public Policies. Barcelona Institute of Economics.
2006-2011 - PhD in economics IES FSV UK

Job history

2006 - odborný asistent - Centrum ekonomických studií VŠEM
2006/2007 - teaching assistant, IES FSV UK (Advanced Microeconomics I, II, Public Choice)
2007/2008 - teaching assistant, IES FSV UK (Advanced Microeconomics I, II, Public Finance A, Public Choice)
2008/2009 - teaching assistant, IES FSV UK (Advanced Microeconomics II, Public Choice)
2010/2011 - teaching IES FSV UK Advanced Microeconomics I
2006-2010 Center for Doctoral Studies
2010 - External lecturer VSFS
From 2008 - Technical editor of AUCO Czech Economic Review
2011/2012 - teaching IES FSV UK Microeconomics I

Awards and prizes

2009 - Best Paper Prize for Young Economists competition WIEM 2009 - additional prize
2008 - Young Economist Competition - 2nd Place

Topics for supervision

Bachelor theses

Topics from following fields are welcome:
Efficiency analysis (DEA, SFA, FDH)
Local public finance
Spatial economics

Master theses

Topics from following fields are welcome:
Efficiency analysis (DEA, SFA, FDH)
Local public finance
Spatial economics

Supervised Bachelor theses

all/awarded: 3/1
Awarded: Bc. Kateřina Červenková