Definitions of variables
| Variable | Definition | Data 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 population | Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit) B-Cons (LG’s consolidated balance sheets) |
| Debt fiscal limit | Dummy 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 share | MOC’s debt share in a sum of municipal debt and MOC’s debt | Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit), Orbis |
| Control variables | ||
| ON_pop | Logarithm 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 i | Ministry of Finance: RB-27 (statement of LG’s revenues) B-Cons (LG’s consolidated balance sheets) Local Data Bank |
| Grants | A share of grants from the central budget in municipal revenues | Ministry of Finance RB-27 (statement of LG’s revenues) Local Data Bank |
| Growth | Growth in total revenue of municipality i over time = total revenue for year t/total revenue for year t-1 | Ministry of Finance: RB-27 (statement of LG’s revenues) |
| Dependent variables in difference-in-differences models | ||
| Debt_all_rev_all | Total on-budget and off-budget debt to total on-budget and off-budget revenues ratio | Ministry 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 | |
| Change | Total 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_rev | Change 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 | ||
| did | Interaction of the having_MOC dummy and Debt fiscal limit binary variable | Orbis |
| Control variables in DiD | ||
| Having MOC | Dummy variable that equals one if municipality owns at least one MOC and 0 otherwise | Orbis |
| Variable | Definition | Data sources |
|---|---|---|
| Size of off-budget activities measured as the sum of revenues of municipal companies (MOC) owned by the municipality | Orbis | |
| Debt_per | Logarithm of municipal debt scaled by the total population | Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit) |
| Debt fiscal limit | Dummy 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 share | MOC’s debt share in a sum of municipal debt and MOC’s debt | Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit), Orbis |
| ON_pop | Logarithm 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 | Ministry of Finance: |
| Grants | A share of grants from the central budget in municipal revenues | Ministry of Finance |
| Growth | Growth in total revenue of municipality | Ministry of Finance: |
| Debt_all_rev_all | Total on-budget and off-budget debt to total on-budget and off-budget revenues ratio | Ministry of Finance RB-NDS (statement of LG’s surplus/ deficit) |
| Debt_per | Logarithm of municipal debt scaled by the total population | |
| Change | Total 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_rev | Change variable scaled by on-budget debt to on-budget revenues ratio | |
| Debt_all_rev | Total on-budget and off-budget debt to total on-budget and off-budget revenues less grants | |
| did | Interaction of the | Orbis |
| Having MOC | Dummy variable that equals one if municipality owns at least one MOC and 0 otherwise | Orbis |
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