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dc.contributor.authorKluza, Krzysztof
dc.date.accessioned2019-07-02T08:17:29Z
dc.date.available2019-07-02T08:17:29Z
dc.date.issued2017
dc.identifier.citationKluza K., Risk assessment of the local government sector based on the ratio analysis and the DEA method. Evidence from Poland, "Eurasian Economic Review", 2017, vol. 7, nr 3, s. 329-351en
dc.identifier.issn1309-422Xen
dc.identifier.urihttp://hdl.handle.net/20.500.12182/711
dc.description.abstractThe local government (LG) sector plays an important role in the EU economies. Besides providing a vast range of public services, it accounts for over 8% of total investment. The crisis, which started in 2008, resulted in increased LG indebtedness and raised concerns over the sector's debt repayment capacity. This paper proposes an alternative methodology of risk assessment of LGs to statutory debt limits, the Altman model and non-financial indicators. Firstly, it employs a corporate finance approach to evaluate the financial standing of individual entities. The measures are based on free operating cash flow and net debt. Next, Data Envelopment Analysis is used to derive the relative performance of LGs in debt utilization. The indicators used are available from the LG financial reports and also allow risk to be monitored on a quarterly basis. The proposed approach allows the ranking of the risk of individual LGs according to both their debt service capacity and long-term ability to manage costs and carry out a rational investment policy. The results obtained using the DEA method also enable the identification of LGs with persistently inferior risk profile. The quantitative analysis is conducted for the local governments in Poland for the period 2008-2015.en
dc.language.isoen
dc.rightsAttribution-NoDerivatives 4.0 Międzynarodowe*
dc.rights.urihttp://creativecommons.org/licenses/by-nd/4.0/*
dc.subjectlocal governmentsen
dc.subjectrisk assessmenten
dc.subjectunsystematic risken
dc.subjectDEA methoden
dc.titleRisk assessment of the local government sector based on the ratio analysis and the DEA method. Evidence from Polanden
dc.typearticleen
dc.contributor.organizationSzkoła Główna Handlowa w Warszawieen
dc.description.number3en
dc.description.physical329-351en
dc.description.volume7en
dc.title.journalEurasian Economic Reviewen


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Attribution-NoDerivatives 4.0 Międzynarodowe
Except where otherwise noted, this item's license is described as Attribution-NoDerivatives 4.0 Międzynarodowe