Debt and the local economy: Problems in benchmarking local government debt affordability

W. Bartley Hildreth, Gerald J. Miller

Research output: Contribution to journalArticle

23 Scopus citations

Abstract

Debt creation imposes an obligation to repay borrowed funds from a wealth base that for most local governments is capitalized in property values. Therefore, the ability to afford debt is tied to the local economy, a factor often overlooked by localities in the analyses of their own position. However, debt levels are also relative, as the many debt affordability studies among governments and by bond rating agencies suggest. We argue here that economic concentration and interjurisdictional coordination fundamentally provide a broader analytical approach to the question a locality asks: can we afford more debt?.

Original languageEnglish (US)
Pages (from-to)99-113
Number of pages15
JournalPublic Budgeting and Finance
Volume22
Issue number4
DOIs
StatePublished - Jan 1 2002

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Public Administration

Fingerprint Dive into the research topics of 'Debt and the local economy: Problems in benchmarking local government debt affordability'. Together they form a unique fingerprint.

  • Cite this