Acta academica karviniensia 2017, 17(4):59-68 | DOI: 10.25142/aak.2017.030

INDEBTEDNESS OF STATUTORY CITIES IN THE CZECH REPUBLIC

Eva Lajtkepová
Vysoké učení technické v Brně, Fakulta podnikatelská, Kolejní 2906/4, 612 00 Brno

In the Czech Republic municipalities are seen, in accordance with the Constitution, as the basic element of local government; their roles, tasks and operations governed by the relevant legal regulations. Municipalities have lower powers to raise taxes and so their incomes are largely dependent on transfers from the state budget. The aim of this text is to investigate the possible dependence of indebtedness (expressed as debt per capita) on the size of the municipality (according to the number of inhabitants) and the fragmentation of local government (measured with the aid of the Herfindahl-Hirschman Index). We examined this dependence in data on the statutory cities of the Czech Republic, using the methods of correlation analysis and the chi-squared test. However on the basis of the results we can state that the only statistically significant correlations are between debt per capita and the size of the city, while all the other results were statistically insignificant.

Keywords: indebtedness, local government, municipality, statutory city
JEL classification: H72

Received: October 8, 2018; Revised: November 30, 1999; Accepted: November 21, 2018; Published: December 30, 2017  Show citation

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Lajtkepová E. INDEBTEDNESS OF STATUTORY CITIES IN THE CZECH REPUBLIC. Acta academica karviniensia. 2017;17(4):59-68. doi: 10.25142/aak.2017.030.
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