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New Ways of Limiting Local Government Debt: An Empirical Assessment of the German Case

  • Severe fiscal pressure experienced by some German municipalities has led to a shift in the way municipalities are controlled by the responsible state governments. Instead of purely relying on a system of approving budgets and borrowing, some states have established debt relief programmes which combine grants and sanctions, or even sent austerity commis-sioners who take over responsibilities of councils and mayors. Whether these are deemed proportionate and legitimate interventions into the constitutionally guaranteed administra-tive autonomy of the local level depends heavily on their success in limiting local government debt. Based on an innovative synthetic control approach, this paper undertakes an empirical assessment of a recent debt relief programme in North Rhine-Westphalia and the deploy-ment of an austerity commissioner, revealing that both instruments to some degree positive-ly impacted upon local government debt, as compared to non-intervention. Nevertheless, it finds the effect is limited in substantial terms.

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Author:Steffen Zabler
ISBN:e-book: 978-3-030-56059-1
Parent Title (English):The Future of Local Self-Government: European Trends in Autonomy, Innovations and Central-Local Relations
Publisher:Palgrave Macmillan
Place of publication:Cham
Editor:Tomas Bergström, Jochen Franzke, Sabine Kuhlmann, Ellen Wayenberg
Document Type:Part of a Book
Year of Completion:2021
Publishing Institution:Deutsche Universität für Verwaltungswissenschaften
Release Date:2021/03/22
Popular scientific document:Nein
Reviewed Document?:Nein
First Page:243
Last Page:255
Documents ordered by chairs:Lehrstuhl für Politikwissenschaft (Univ.-Prof. Dr. Stephan Grohs)
Documents ordered by discipline (DDC classification):300 Sozialwissenschaften / 320 Politik
Licence (German):License LogoUrhG – es gilt deutsches Urheberrecht