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Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons

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  • Filip Hrůza

Abstract

From the general perspective, municipalities are economic organisations like private companies with their legal subjectivity, own revenues, and property. To better understand their financial management, it is desirable to conduct relevant empirical research, which lacks in the case of the Czech municipal sector and Czech municipalities. This paper aims to analyse and identify the financial behaviour of Czech municipalities within the post-crisis period focusing on the influence of internal and external vulnerability factors. The panel data and linear regression model (fixed-effect model) were used to evaluate how an external crisis affected the financial management of municipalities. The behaviour of municipal financial management is reflected through financial health, financial dependency, or budget rigidity. The outcomes of the analysis are presented and put into perspective with relevant international research.

Suggested Citation

  • Filip Hrůza, 2023. "Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons," Prague Economic Papers, Prague University of Economics and Business, vol. 2023(4), pages 389-410.
    • Handle: RePEc:prg:jnlpep:v:2023:y:2023:i:4:id:837:p:389-410
    DOI: 10.18267/j.pep.837
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    References listed on IDEAS

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    More about this item

    Keywords

    municipality; financial management; financial health; financial dependency; budget rigidity;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other

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