How should subnational government borrowing be regulated?
Subtitle: some cross-country empirical evidence
By: prepared by Raju Singh and Alexander Plekhanov.
Contributors: Plekhanov, A. M.; International Monetary Fund. Fiscal Affairs Dept.
Series: IMF working paper -- WP/05/54
Publisher: International Monetary Fund, Fiscal Affairs Dept.
Published: 2005
Place of publication: Washington, D.C
Language: eng
Number of pages: 33
Subjects: Subnational governments.; Debts, Public.; Budget deficits.
Description: Countries have adopted various institutional responses to subnational government borrowing. Using a sample of 44 countries 1982-2000, this paper provides a panel data analysis to determine the most effective borrowing constraints for containing local fiscal deficits. The results suggest that no single institutional arrangement is superior under all circumstances. The appropriateness of specific arrangements depends upon other institutional characteristics, particularly the degree of vertical fiscal imbalance, the existence of any bailout precedent, and the quality of fiscal reporting.
Notes: "March 2005."

Includes bibliographical references (p. 26-30).

Also available on the World Wide Web.