GAUK 3121/2008 Local Expenditures in the Czech Republic
|Principal investigator:||PhDr. Lenka Šťastná Ph.D.|
doc. PhDr. Martin Gregor Ph.D.
† prof. RNDr. Ing. František Turnovec CSc.
|Description:||Expenditures of municipalities in the Czech Republic deserve closer attention. In our project, we aim at filling the gap in three ways. Firstly, we ask whether subsidies and money transfers from central government to local governments are efficient; efficiency of local expenditure is perhaps the most important information for policy makers which should be delivered by the analysis. This issue also contains a comprehensive description and assessment of expenditures of the Czech municipalities.
Secondly, we empirically test determinants of municipalities’ expenditures. We aim to estimate how economic, demographic, political and other variables affect the size of different expenditures. As explanatory variable we further include political factors which can affect fiscal performance of local government and test for existence of the political economic cycle.
Thirdly, we study strategic interaction between municipalities. The system of financing local expenditures is centralized, therefore, municipalities do not have significant control over their revenues, but they are almost unrestrained in setting their expenditures. We will explore whether local expenditures have spillovers into neighboring regions which can influence decision-making of neighboring governments. In this context, we will also test for competition among regions seeking extra benefits related to inflow of firms and households into their districts.
|Work in grant:|