Tag Archives: cities

Cities in distress look upward…

We have discussed the idea that evaluating the fiscal health with respect to debt of a particular jurisdiction also depends on the debt of its “dependents” and the situation of other jurisdictions which tax the same base to some extent (see discussion in Clingermayer and Wood (1995)). This NYT article discusses how cities risking bankruptcy may appeal instead to the state for support. What is the potential impact on┬áthe incentives facing cities regarding financial management?

Cities in debt turn to states, adding strain
http://www.nytimes.com/2010/10/05/business/05cities.html?_r=1

Clingermayer, JC and BD Wood. 1995. Disentangling Patterns of State Debt Financing. The American Political Science Review 89, no. 1 (March): 108-120.

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Cities approaching bankruptcy look upward to seek help for fiscal challenges

We discussed how cities can go bankrupt. This NYT article discusses how cities risking this outcome may appeal instead to the state for support. What does this potentially do to the incentives facing cities regarding financial management?

Cities in debt turn to states, adding strain
http://www.nytimes.com/2010/10/05/business/05cities.html?_r=1

Comments Off on Cities approaching bankruptcy look upward to seek help for fiscal challenges

Filed under public finance