Does financial health influence the re-election of local governments

Datos Bibliográficos

ID20201490
AutoresBeatriz Cuadrado-Ballesteros (0000-0003-3606-2302, Universidad de Salamanca), Serena Santis (0000-0003-0919-2080, University of Campania "Luigi Vanvitelli"), Francesca Citro (0000-0003-4132-9091, University of Salerno), Marco Bisogno (0000-0003-3155-2919, University of Salerno)
Año2019
Volumen31
Número3
Páginas345-363
Fecha de publicación2019-09-02
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Identificadores de la revistaISSN: 1096-3367 • E-ISSN: 1945-1814
EditorialEmerald (PUBLISHER)
DOI10.1108/jpbafm-10-2018-0114
OpenAlexW2973619734
IdiomaEN
Citas recibidas5
Referencias citadas46

Purpose The purpose of this paper is to investigate the possible influence of financial health of local governments (LGs) on the re-election of politicians. Design/methodology/approach The study investigates a sample of 129 Italian LGs with more than 50,000 inhabitants for the period 2008–2014, resulting in 903 observations. A regression model has been implemented, where the dependent variable refers to the probability of re-election, and different dimensions of financial health are the independent variables. Findings Budgetary and service-level solvency influence positively the probability of re-election of the major, while the ability of the government to generate liquidity to pay its short-term debts is not statistically relevant. Moreover, the sustainability dimension of budgetary solvency is more relevant than the flexibility and vulnerability dimensions. Practical implications To be re-elected, local politicians are advised to pay attention to and preserve the social welfare of citizens with the available resources. Originality/value This study adds fresh insight to the literature on financial health, emphasising the relevance of public financial management in the re-election of local politicians

Business · Economics · Local government · Market liquidity · Political science · Public economics · Solvency · Welfare · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Public Administration · Finance