The Transparency of Subnational Debt as a Mechanism to Limit its Growth

The aim of this paper is to demonstrate the lack of an explicit transparency obligation in terms of disclosing the amount of subnational public debt and limiting it in relevant legislation, which effectively allow subnational debt to balloon. To analyze this matter, we estimate two econometric model...

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Detalles Bibliográficos
Autores: Astudillo, Marcela, Blancas, Andrés, Fonseca Corona, Francisco Javier
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2017
País:México
Institución:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repositorio:Problemas del Desarrollo. Revista Latinoamericana de Economía
Idioma:español
inglés
OAI Identifier:oai:ojs.pkp.sfu.ca:article/57525
Acceso en línea:https://www.probdes.iiec.unam.mx/index.php/pde/article/view/57525
Access Level:acceso abierto
Palabra clave:deuda subnacional
corrupción
transparencia
finanzas públicas
modelos econométricos
entidades federativas
Subnational debt
corruption
transparency
public finance
econometric models
states
Descripción
Sumario:The aim of this paper is to demonstrate the lack of an explicit transparency obligation in terms of disclosing the amount of subnational public debt and limiting it in relevant legislation, which effectively allow subnational debt to balloon. To analyze this matter, we estimate two econometric models that combine panel data and time series to determine the impact of transparency requirements and regulatory constraints on the behavior of state debt. It was found that on average, debt tended to be 28% higher in states where it was not mandatory to disclose debt levels; likewise, it was observed that on average, debt was 43% lower in states with explicit debt limits.