Table 3.

Definitions of variables

VariableDefinitionData sources
Dependent variable
OFF_ONless
grantsOFF
Size of off-budget activities measured as the sum of revenues of municipal companies (MOC) owned by the municipality i scaled by a sum of the off-budget activities and the size of the municipality’s budgetary Activity less transfers (grants)Orbis
Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit)
Local Data Bank
Test variables
Debt_per
capita
Logarithm of municipal debt scaled by the total populationMinistry of Finance RB-NDS (statement of LG’s surplus/ deficit)
B-Cons (LG’s consolidated balance sheets)
Debt fiscal limitDummy variable that equals 0 in the years before the new limits came to force (2010–2013) and one after the new limits were implemented (2014–2018) 
MOC debt shareMOC’s debt share in a sum of municipal debt and MOC’s debtMinistry of Finance RB-NDS (statement of LG’s surplus/ deficit), Orbis
Control variables
ON_popLogarithm of the volume of budgetary activity size measured as the sum of current expenditure and capital expenditure scaled by the size of the population of the municipality iMinistry of Finance:
RB-27 (statement of LG’s revenues)
B-Cons (LG’s consolidated balance sheets)
Local Data Bank
GrantsA share of grants from the central budget in municipal revenuesMinistry of Finance
RB-27 (statement of LG’s revenues)
Local Data Bank
GrowthGrowth in total revenue of municipality i over time = total revenue for year t/total revenue for year t-1Ministry of Finance:
RB-27 (statement of LG’s revenues)
Dependent variables in difference-in-differences models
Debt_all_rev_allTotal on-budget and off-budget debt to total on-budget and off-budget revenues ratioMinistry of Finance RB-NDS (statement of LG’s surplus/ deficit)
B-Cons (LG’s consolidated balance sheets)
Debt_per
capita
Logarithm of municipal debt scaled by the total population
ChangeTotal on-budget and off-budget debt to total on-budget and off-budget revenues ratio less on-budget debt to on-budget revenues ratio
Change/Debt_revChange variable scaled by on-budget debt to on-budget revenues ratio
Debt_all_rev
lessgrants_all
Total on-budget and off-budget debt to total on-budget and off-budget revenues less grants
Test variables in DiD
didInteraction of the having_MOC dummy and Debt fiscal limit binary variableOrbis
Control variables in DiD 
Having MOCDummy variable that equals one if municipality owns at least one MOC and 0 otherwiseOrbis
Source: Authors’ work

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