Table 4

Aspects that shape the financial context in which LGs operate according to literature

DimensionModel/criteria
Administrative traditionsKuhlmann et al. (2025)
  • Continental Napoleonic

  • Continental Federal

  • Nordic

  • Anglo-Saxon

  • Central Eastern European

  • South Eastern European

Jugl (2025)
  • citizen orientation

  • structural concentration

Legal constraintsNo model clearly emerges from the literature, but an assessment should include at least fiscal rules, debt limits and insolvency procedures. (Geissler et al., 2021)
Accounting systems and adoption of international standards
  • Accrual accounting vs others

  • Adoption of IPSAS

  • Non-financial information

Supervision, auditing and accountability mechanismsNo model clearly emerges from the literature, but an assessment should include at least (Geissler and Wegrich, 2021)
  • frequency

  • enforcement power

  • compliance vs transparency and performance-based accountability

  • independence, e.g. administrative control vs managerial autonomy

(De)centralisation and coordinationPollitt and Bouckaert (2017)
  • degree of vertical dispersion of authority

  • degree of horizontal coordination

Source(s): Authors’ own work

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