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

W. Bartley Hildreth, Gerald J. Miller

Research output: Contribution to journalArticle

20 Citations (Scopus)

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

Fingerprint

local economy
benchmarking
indebtedness
concentration of enterprises
obligation
rating
Debt
Local economy
Government debt
Benchmarking
Affordability
Local government
ability
Locality

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Public Administration

Cite this

Debt and the local economy : Problems in benchmarking local government debt affordability. / Hildreth, W. Bartley; Miller, Gerald J.

In: Public Budgeting and Finance, Vol. 22, No. 4, 01.01.2002, p. 99-113.

Research output: Contribution to journalArticle

Hildreth, W. Bartley ; Miller, Gerald J. / Debt and the local economy : Problems in benchmarking local government debt affordability. In: Public Budgeting and Finance. 2002 ; Vol. 22, No. 4. pp. 99-113.
@article{e74ed5ed05754b5390f8fad315f95c02,
title = "Debt and the local economy: Problems in benchmarking local government debt affordability",
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?.",
author = "Hildreth, {W. Bartley} and Miller, {Gerald J.}",
year = "2002",
month = "1",
day = "1",
doi = "10.1111/1540-5850.00091",
language = "English (US)",
volume = "22",
pages = "99--113",
journal = "Public Budgeting and Finance",
issn = "0275-1100",
publisher = "Wiley-Blackwell",
number = "4",

}

TY - JOUR

T1 - Debt and the local economy

T2 - Problems in benchmarking local government debt affordability

AU - Hildreth, W. Bartley

AU - Miller, Gerald J.

PY - 2002/1/1

Y1 - 2002/1/1

N2 - 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?.

AB - 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?.

UR - http://www.scopus.com/inward/record.url?scp=79961199056&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=79961199056&partnerID=8YFLogxK

U2 - 10.1111/1540-5850.00091

DO - 10.1111/1540-5850.00091

M3 - Article

AN - SCOPUS:79961199056

VL - 22

SP - 99

EP - 113

JO - Public Budgeting and Finance

JF - Public Budgeting and Finance

SN - 0275-1100

IS - 4

ER -