IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v13y2017i1p53.html
   My bibliography  Save this article

How to Improve the Financial Conditions of Local Governments in a Period of Crisis: An Explanatory Case Study

Author

Listed:
  • Giovanna Lucianelli
  • Francesca Citro
  • Serena Santis
  • Alfredo Ettore Tranfaglia
  • Andrea Mazzillo

Abstract

The context of austerity and crisis in the local governments has focused on looking for a solution to avoid the distress while also improving financial health. Therefore, a system to monitor the financial situation of local authorities is needed in order to understand what the governments’ proceeding to manage the crisis are. This paper aims to analyse the financial distress in the municipality of Rome to evaluate the processes that occur inside the “black box” of the organizational, institutional and strategic implementation of the reorganization practices and routines, also highlighting what are the indicators of the financial conditions that fall into either a positive or negative area so as to implement adequate planning. The analysis is conducted through an explanatory case study to understand and to explain the reasons for management practices in a condition of financial distress. The main finding shows that the case of Rome represents a good example of the financial resilience through a combination of capacities and reactions such as management of slack resources and income generation.

Suggested Citation

  • Giovanna Lucianelli & Francesca Citro & Serena Santis & Alfredo Ettore Tranfaglia & Andrea Mazzillo, 2017. "How to Improve the Financial Conditions of Local Governments in a Period of Crisis: An Explanatory Case Study," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 1-53, December.
    • Handle: RePEc:ibn:ijbmjn:v:13:y:2017:i:1:p:53
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/71745/39675
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/71745
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cristina Checherita-Westphal & Andrew Hughes Hallett & Philipp Rother, 2014. "Fiscal sustainability using growth-maximizing debt targets," Applied Economics, Taylor & Francis Journals, vol. 46(6), pages 638-647, February.
    2. Cohen, Sandra & Doumpos, Michael & Neofytou, Evi & Zopounidis, Constantin, 2012. "Assessing financial distress where bankruptcy is not an option: An alternative approach for local municipalities," European Journal of Operational Research, Elsevier, vol. 218(1), pages 270-279.
    3. repec:eme:qrampp:v:11:y:2014:i:1:p:13-28 is not listed on IDEAS
    4. Marco Bisogno & Francesca Citro & Aurelio Tommasetti, 2014. "The financial distress of public sector entities. Evidence from Italian public universities," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 10(2), pages 203-227.
    5. Inman, Robert P, 1995. "How to Have a Fiscal Crisis: Lessons from Philadelphia," American Economic Review, American Economic Association, vol. 85(2), pages 378-383, May.
    6. Beatriz Cuadrado-Ballesteros & Noemí Mordán & Isabel-María García-Sánchez, 2014. "Is Local Financial Health Associated with Citizens’ Quality of Life?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 559-580, November.
    7. Pérez López, Gemma & Plata Díaz, Ana María & Zafra Gómez, José L. & López Hernández, Antonio M., 2013. "Deuda viva municipal en un contexto de crisis económica: análisis de los factores determinantes y de las formas de gestión," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 16(2), pages 83-93.
    8. Emma Capalbo & Giuseppe Grossi, 2014. "Assessing the influence of socioeconomic drivers on Italian municipal financial destabilization," Public Money & Management, Taylor & Francis Journals, vol. 34(2), pages 107-114, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanna Lucianelli & Amalia Lucia Fazzari & Matteo Cavalieri, 2021. "The Analysis of Income Statement and Final Balance Sheet in Local Governments: A Case Study for Financial Sustainability," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(3), pages 1-80, July.
    2. Guyot, Alexis & Doumpos, Michael & Zopounidis, Constantin, 2016. "A novel multi-attribute benchmarking approach for assessing the financial performance of local governments: Empirical evidence from FranceAuthor-Name: Galariotis, Emilios," European Journal of Operational Research, Elsevier, vol. 248(1), pages 301-317.
    3. Emanuele Padovani & Francesco Porcelli & Alberto Zanardi, 2024. "The determinants of the financial distress of Italian municipalities: How much is it due to inadequate resources?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1494-1533, December.
    4. Lotta-Maria Sinervo, 2020. "Financial Sustainability of Local Governments in the Eyes of Finnish Local Politicians," Sustainability, MDPI, vol. 12(23), pages 1-16, December.
    5. İbrahim Özmen & Mihai Mutascu, 2024. "Public Debt and Growth: New Insights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8706-8736, June.
    6. Andrew Haughwout & Robert Inman & Steven Craig & Thomas Luce, 2004. "Local Revenue Hills: Evidence from Four U.S. Cities," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 570-585, May.
    7. Carina Steckenleiter & Michael Lechner & Tim Pawlowski & Ute Schüttoff, 2023. "Do local expenditures on sports facilities affect sports participation?," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 1103-1128, October.
    8. Andrew Feltenstein & Nour Abdul-Razzak & Jeffrey Condon & Biplab Kumar Datta, 2015. "Tax Evasion, the Provision of Public Infrastructure and Growth: A General Equilibrium Approach to Two Very Different Countries, Egypt and Mauritius," Journal of African Economies, Centre for the Study of African Economies, vol. 24(suppl_2), pages 43-72.
    9. Mariola Kapidani, 2018. "Financial Condition Analysis of Municipal Units in Albania," MIC 2018: Managing Global Diversities; Proceedings of the Joint International Conference, Bled, Slovenia, 30 May–2 June 2018,, University of Primorska Press.
    10. Ryota Nakatani, 2021. "Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    11. Kuusi, Tero, 2014. "Consolidation under the Europe’s New Fiscal Rules: Analyzing the Implied Minimum Fiscal Effort," ETLA Working Papers 23, The Research Institute of the Finnish Economy.
    12. Philipp Heimberger, 2021. "Do Higher Public Debt Levels Reduce Economic Growth?," wiiw Working Papers 211, The Vienna Institute for International Economic Studies, wiiw.
    13. Falilou Fall & Debra Bloch & Jean-Marc Fournier & Peter Hoeller, 2015. "Prudent debt targets and fiscal frameworks," OECD Economic Policy Papers 15, OECD Publishing.
    14. Hela Ben Hassine Khalladi, 2019. "Fiscal fatigue, public debt limits and fiscal space in some MENA countries," Economics Bulletin, AccessEcon, vol. 39(2), pages 1005-1017.
    15. Jean-Marc Fournier, 2016. "The Positive Effect of Public Investment on Potential Growth," OECD Economics Department Working Papers 1347, OECD Publishing.
    16. Markus Ahlborn & Rainer Schweickert, 2018. "Public debt and economic growth – economic systems matter," International Economics and Economic Policy, Springer, vol. 15(2), pages 373-403, April.
    17. Serena Santis, 2020. "The Demographic and Economic Determinants of Financial Sustainability: An Analysis of Italian Local Governments," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    18. Iyer, Ananth V. & Vedantam, Aditya & Lacourbe, Paul, 2023. "Recycled content claims under demand benefit and supply uncertainty: Multi-period model and application to glasswool insulation," European Journal of Operational Research, Elsevier, vol. 309(2), pages 745-761.
    19. Jeffrey Lin, 2017. "Understanding Gentrification’s Causes," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 2(3), pages 9-17, July.
    20. Crombach, Lamar & Bohn, Frank & Sturm, Jan-Egbert, 2024. "The “Benefits” of being small: Loose fiscal policy in the European Monetary Union," Journal of Public Economics, Elsevier, vol. 234(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijbmjn:v:13:y:2017:i:1:p:53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.