scholarly journals Cost efficiency and financial situation of local governments in the Canary Isles during the recession

2019 ◽  
Vol 22 (2) ◽  
pp. 129-144 ◽  
Author(s):  
Diego Prior ◽  
Ignacio Martín-Pinillos-Castellanos ◽  
Gemma Pérez-López ◽  
José L. Zafra-Gómez
Keyword(s):  
Cost Efficiency ◽  
Local Governments ◽  
Geographic Area ◽  
Financial Economic ◽  
The Great Recession ◽  
Financial Condition ◽  
Different Types ◽  
The Cost ◽  
Stage Analysis

This paper examines cost efficiency in the Spanish municipal public sector, in a specific geographic area (the Canary Isles, Spain), with respect to financial condition and different types of municipal debt. The study focuses on municipalities dependent on tourism and on the consequences to them of the Great Recession, doing so via a two-stage analysis. In the first, the order-m method is used to evaluate the cost efficiency of 77 Canary Isles municipalities, for the period 2008-12. In the second stage, we examine the effect produced on cost efficiency by different types of borrowing (long term, short term, financial and commercial) together with other financial, economic, political and quality variables, using the model developed by Simar and Wilson (2007), based on a truncated bootstrap regression with panel data. Empirical analysis shows that in times of crisis there is a significant relationship between the components of financial condition and cost efficiency. In conclusion, municipal cost efficiency increases with commercial debt, but decreases with financial debt. Furthermore, certain socioeconomic variables affect the levels of cost efficiency. Este trabajo examina la eficiencia de costes para el caso particular del sector público municipal español, concretamente, para el caso de los municipios canarios, poniendo especial énfasis en áreas relacionadas con la condición financiera y diferentes tipologías de deuda, teniendo en cuenta las características propias que estos municipios poseen, como un índice turístico elevado. En primer lugar, se utiliza el método de orden m para evaluar la eficiencia de costes de 77 municipios de las Islas Canarias, para el período 2008-12. En la segunda etapa, examinamos el efecto producido en la eficiencia de costes por diferentes tipologías de endeudamiento (largo plazo, corto plazo, financiero y comercial) junto con otras variables financieras, económicas, políticas y de calidad, utilizando el modelo desarrollado por Simar y Wilson (2007), basado en una regresión truncada con datos de panel. Nuestro análisis empírico muestra que en tiempos de crisis existe una relación significativa entre los componentes de la condición financiera y la eficiencia de costes. En particular, concluye que mientras la eficiencia de los costes municipales aumenta con la deuda comercial, disminuye con la deuda financiera. Además, mostramos que ciertas variables socioeconómicas afectan los niveles de eficiencia de costes.

Modeling Fiscal Stress and Contracting Out in Local Government: The Influence of Time, Financial Condition, and the Great Recession

2017 ◽  
Vol 48 (6) ◽  
pp. 565-583 ◽  
Author(s):  
Antonio M. López-Hernández ◽  
José L. Zafra-Gómez ◽  
Ana M. Plata-Díaz ◽  
Emilio J. de la Higuera-Molina
Keyword(s):  
Great Recession ◽  
Local Governments ◽  
Fiscal Stress ◽  
Contracting Out ◽  
The Great Recession ◽  
Financial Condition ◽  
Precise Understanding ◽  
The Impact ◽  
The Relationship

Various studies have analyzed the relationship between fiscal stress and contracting out, but have failed to achieve conclusive results. In this article, we take a broad view of fiscal stress, addressed in terms of financial condition and studied over a lengthy period (2000-2010). The relationship between fiscal stress and contracting out is studied using a dynamic model, based on survival analysis, a methodology that enables us to take into account the effect of time on this relationship. As this study period includes the years of the Great Recession (2008-2010), we also highlight the impact of this event on the fiscal stress–contracting out relation. The results obtained suggest that taking into account the passage of time and conducting a long-term assessment of financial condition enable a more precise understanding of this relation. We also find that the Great Recession reduced the probability of local governments’ contracting out public services.

scholarly journals Peran Penyuluhan Pertanian dan Preferensi Risiko terhadap Penggunaan Pupuk Berlebih pada Usaha Tani Padi

2019 ◽  
Vol 37 (1) ◽  
pp. 79
Author(s):  
Roydatul Zikria ◽  
Arie Damayanti
Keyword(s):  
Nitrogen Fertilizer ◽  
Cost Efficiency ◽  
Risk Preference ◽  
Agricultural Extension ◽  
Farm Households ◽  
Model Risk ◽  
Degree Of Risk ◽  
The Cost ◽  
The Impact

<strong>English</strong><br />Fertilizer overuse was expected to increase rice production. Yet it might decrease soil fertility in the long term. In Indonesia, there were more than 50% of farm households who used nitrogen fertilizer in excess although government recommendation was 250 kg/ha. In 2010, the average of nitrogen fertilizer overuse was 285 kg/ha and it decreased to 278 kg/ha in 2016. This study was aimed to analyse the impact of agricultural extension and risk preference on fertilizer overuse using Patanas Survey in 2010 and 2016. Those effects were estimated with Tobit model. Risk preference of farm households were estimated with non-parametric model using Just-Pope production function. The empirical results showed that agricultural extension reduced significantly fertilizer overuse in rice farming. Moreover, this study found that degree of risk preference negatively and significantly affected on fertilizer overuse. If degree of risk preference increased by one unit then fertilizer overuse decreased by 1.36 kg/ha, so its efficiency was only Rp2,448/ha. The cost efficiency was small because this study only used nitrogen fertilizer overuse as dependent variable whose dose was recommended by Ministry of Agriculture. Hence, other chemical fertilizer dose should be recommended by creating a regulation so fertilizer overuse could be prevented. <br /><br /><br /><strong>Indonesian</strong><br />Penggunaan pupuk berlebih dilakukan untuk meningkatkan produksi padi. Namun dalam jangka panjang penggunaan pupuk yang berlebih dapat menurunkan kesuburan tanah. Lebih dari 50% rumah tangga petani di Indonesia menggunakan urea secara berlebih meskipun pemerintah telah merekomendasikan sebesar 250 kg/ha. Pada tahun 2010 rata-rata penggunaan urea berlebih mencapai 285 kg/ha sedangkan pada tahun 2016 rata-rata penggunaanya menjadi 278 kg/ha. Dengan menggunakan data Survei Panel Petani Nasional (Patanas) Tahun 2010 dan Tahun 2016, penelitian ini bertujuan untuk menganalisis peran penyuluhan pertanian dan preferensi risiko terhadap kelebihan penggunaan pupuk. Dampak tersebut diestimasi dengan model tobit. Preferensi risiko rumah tangga petani dihitung dengan model nonparametrik menggunakan fungsi produksi Just-Pope. Hasil empiris menunjukkan bahwa penyuluhan pertanian berperan signifikan dalam mengurangi kelebihan penggunaan pupuk pada usaha tani padi. Selain itu, penelitian ini menemukan bahwa tingkat risk preference berpengaruh negatif dan signifikan terhadap kelebihan penggunaan pupuk. Kenaikan satu unit tingkat risk preference mengakibatkan rumah tangga petani mengurangi kelebihan penggunaan pupuk sebanyak 1,36 kg/ha sehingga terjadi efisiensi sebesar Rp2.448/ha. Kecilnya efisiensi biaya dalam penelitian dikarenakan penggunaan pupuk yang diukur sebagai variabel dependen hanya urea dengan dosis yang telah ditetapkan oleh Kementan. Oleh karena itu perlu adanya regulasi yang mengatur dosis penggunaan pupuk kimia lain sehingga penggunaan pupuk berlebih dapat dicegah.

scholarly journals DEVELOPING A MEASURE OF LOCAL GOVERNMENT’S FINANCIAL CONDITION

2015 ◽  
Vol 29 (2) ◽  
Author(s):  
Irwan Taufiq Ritonga
Keyword(s):  
Local Governments ◽  
Composite Index ◽  
Warning System ◽  
Predictive Ability ◽  
Condition Index ◽  
Short Term ◽  
Financial Flexibility ◽  
Financial Independence ◽  
Financial Condition

This study develops an instrument to measure the financial condition of local governments(LG) in Indonesia. The instrument will serve as an early warning system for local governments’financial management. The instrument to measure their financial condition consists of sixdimensions, namely short-term solvency, long-term solvency, budgetary solvency, service-levelsolvency, financial flexibility, and financial independence. Each dimension has its own indicators.There are a total of eighteen indicators examined in this study. These indicators are combinedto form a composite index, called a Financial Condition Index (FCI). The reliability andvalidity of the composite index is analyzed and the results show that the measures developed inthis study are reliable and valid. In addition, the instrument possesses the criteria of a goodmeasure: it is theoretically sound, a comprehensive assessment, it has predictive ability, distinctiveability, it is practical, objective, and a resistant to manipulation and gaming.Keywords: financial condition, local government, short term solvency, long term solvency,budgetary solvency, service-level solvency, financial flexibility, financial independence

Local Governance and the Issue of Fiscal Health

2018 ◽  
Vol 50 (1) ◽  
pp. 46-55 ◽  
Author(s):  
Bruce D. McDonald
Keyword(s):  
Great Recession ◽  
Local Governments ◽  
Local Governance ◽  
Fiscal Health ◽  
The Public ◽  
Measurement Systems ◽  
Academic Literature ◽  
The Great Recession ◽  
Financial Condition ◽  
Provision Of Services

Since the start of the Great Recession, the issue of fiscal health possesses a prominent place in the management of local governments. To ensure the government’s continuation and its provision of services, administrators must balance the demands of the public with the resources it has available. Although a number of measurement approaches appear to help administrators, there is a lack of agreement on how fiscal health should be measured. To aid in the management of local governments and push the academic literature forward, this article investigates the measurement systems of financial condition established in the literature while considering their implications on governance.

scholarly journals The Cost of Financial Frictions for Life Insurers

2015 ◽  
Vol 105 (1) ◽  
pp. 445-475 ◽  
Author(s):  
Ralph S. J. Koijen ◽  
Motohiro Yogo
Keyword(s):  
Financial Crisis ◽  
Life Insurance ◽  
Cost Of Capital ◽  
Financial Frictions ◽  
Life Insurers ◽  
Pricing Behavior ◽  
Different Types ◽  
Shadow Cost ◽  
The Cost

During the financial crisis, life insurers sold long-term policies at deep discounts relative to actuarial value. The average markup was as low as −19 percent for annuities and −57 percent for life insurance. This extraordinary pricing behavior was due to financial and product market frictions, interacting with statutory reserve regulation that allowed life insurers to record far less than a dollar of reserve per dollar of future insurance liability. We identify the shadow cost of capital through exogenous variation in required reserves across different types of policies. The shadow cost was $0.96 per dollar of statutory capital for the average company in November 2008. (JEL G01, G22, G28, G32)

scholarly journals DEVELOPING A MEASURE OF LOCAL GOVERNMENT’S FINANCIAL CONDITION

2015 ◽  
Vol 29 (2) ◽  
Author(s):  
Irwan Taufiq Ritonga
Keyword(s):  
Local Governments ◽  
Composite Index ◽  
Warning System ◽  
Predictive Ability ◽  
Condition Index ◽  
Short Term ◽  
Financial Flexibility ◽  
Financial Independence ◽  
Financial Condition

This study develops an instrument to measure the financial condition of local governments(LG) in Indonesia. The instrument will serve as an early warning system for local governments’financial management. The instrument to measure their financial condition consists of sixdimensions, namely short-term solvency, long-term solvency, budgetary solvency, service-levelsolvency, financial flexibility, and financial independence. Each dimension has its own indicators.There are a total of eighteen indicators examined in this study. These indicators are combinedto form a composite index, called a Financial Condition Index (FCI). The reliability andvalidity of the composite index is analyzed and the results show that the measures developed inthis study are reliable and valid. In addition, the instrument possesses the criteria of a goodmeasure: it is theoretically sound, a comprehensive assessment, it has predictive ability, distinctiveability, it is practical, objective, and a resistant to manipulation and gaming.Keywords: financial condition, local government, short term solvency, long term solvency,budgetary solvency, service-level solvency, financial flexibility, financial independence

scholarly journals Efficiency in inventories of ants in a forest reservein Central Amazonia

2009 ◽  
Vol 44 (8) ◽  
pp. 940-948 ◽  
Author(s):  
Jorge Luiz Pereira de Souza ◽  
Carlos Alberto Ribeiro de Moura ◽  
Elizabeth Franklin
Keyword(s):  
Cost Efficiency ◽  
Multivariate Analyses ◽  
Primary Forest ◽  
Sampling Effort ◽  
P Values ◽  
Central Amazonia ◽  
Maximum Effort ◽  
The Cost ◽  
Mantel Correlations

The objective of this work was to evaluate an inventory method efficiency for ants. We used subsamples collected in 24 transects of 100 m, distributed in 6 plots of 600 ha each in primary forest, as part of a long-term project. Ten litter subsamples were extracted per transect using Winkler extractors. Ants were identified to genus level, and Crematogaster, Gnamptogenys and Pachycondyla genera to species/morphospecies level. To evaluate the consequences of reduced sampling on the retention of ecological information, we estimated the lowest number of subsamples needed to detect the effects of environmental variables. Multidimensional scaling (MDS) was used to generate dissimilarity matrices, and Mantel correlations between each reduced-sampling effort and maximum effort were used as an index of how much information was maintained and could still be used in multivariate analyses. Lower p-values was observed on the effect of soil pH in the community of genera, and on the effect of the litter volume for the community of Crematogaster. The trend was still detectable in the analysis based on reduced-sampling. The number of subsamples can be reduced, and the cost-efficiency of the protocol can be improved with little loss of information.

Drivers for the financial condition of Local Government: a comparative study between Italy and Spain

2015 ◽  
Vol 13 (2) ◽  
pp. 161-184 ◽  
Author(s):  
Isabel Brusca ◽  
Francesca Manes Rossi ◽  
Natalia Aversano
Keyword(s):  
Local Government ◽  
Comparative Study ◽  
Local Governments ◽  
Comparative Approach ◽  
Financial Sustainability ◽  
Short Term ◽  
Financial Factors ◽  
Financial Condition ◽  
Multidimensional Concept

This paper aims to analyse the influence of socio-economic, political and financial factors on the financial condition of Italian and Spanish local governments in a comparative approach. The research is also aimed at understanding to what extent a model for the analysis of the financial condition can be generalized to different contexts. We assume that the financial condition is a multidimensional concept, with the results highlighting that while in Spain there is a high correlation between the long term financial and short term economic situations and an indicator can combine both dimensions, in Italy both dimensions are differentiated. There are also differences in the drivers of financial sustainability in both countries.

Pandemia a funkcjonowanie jednostek samorządu gminnego zadłużonych w parabankach – przypadek gminy Raciechowice

2020 ◽  
Vol 18 (4) ◽  
pp. 95-112
Author(s):  
Marta Balcerek-Kosiarz ◽  
Keyword(s):  
Public Service ◽  
Local Governments ◽  
Public Services ◽  
The Public ◽  
The Core ◽  
Financial Condition ◽  
Legal Forms ◽  
Service Strategies ◽  
Financial Recovery

The aim of the article is to present the influence of pandemic, which contributes to changes in the scope of the delivery of public services by local governments. An interesting example are local governments, which have increased their financial debt in spite of their financial recovery programmes. These local governments were forced to change their public service strategies and their management in the sphere of select organizational and legal forms. The article presents the proposal of the public service delivery on the example of the Raciechowice municipality, in the Małopolskie voivodship, which in 2020 reached the highest debt level in Poland. The financial condition of the Raciechowice municipality is compared with the Ostrowice municipality, which was abolished on January 1, 2020 by including its territory into Drawsko Pomorskie. The core conclusion of the study is the fact that the delivery of public services by budgetary units contributes to the increase of the financial debt of the Raciechowice municipality. The decisions of central authorities, which instead of implementing long-term solutions during the pandemic availed themselves of emergency aid tools, also impact the increase in the budgetary deficit. This resulted in the necessity of finding additional resources on the part of local government units and in consequence led to the growth of the non-bank financial intermediary market.

Design Objectives and Experience With Processor Based Gas Turbine Controls

1984 ◽  
Author(s):  
Hans D. Lenz
Keyword(s):  
Control Systems ◽  
Gas Turbine ◽  
Preventive Maintenance ◽  
Operating Conditions ◽  
Operating Costs ◽  
Future Developments ◽  
Different Types ◽  
System Requirements ◽  
The Cost

This paper describes the control system requirements to reduce operating costs of gas turbine driven equipment, and the features and technologies available from up-to-date control systems to meet these requirements. Modern control systems can affect the cost of operation in the following areas: - Reduction of downtime. - Optimizing of performance during all operating conditions. - Long-term trending and failure diagnostics to maintain optimum efficiency and for preventive maintenance. Advances in electronic technology, especially microprocessors, make it possible to achieve improvements in these areas. Programming methods, an important tool in the application of this technology, are discussed. Applications of control systems are used to illustrate their effectiveness. Guidelines are presented to judge the value of different types of control systems in gas turbine and other applications and a look at future developments is presented.

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