<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The aim of the paper is to investigate spatial interactions among the debt of 2,442 municipalities in Poland over the period 2005–2020. Using the dynamic spatial Durbin model with two-way fixed effects, it provides empirical evidence of positive spatial interactions. It is estimated that an increase in debt per capita in a given municipality by PLN 100 is related to an increase in the debt per capita in neighbouring municipalities by PLN 8–10. The result is robust to the various specifications of spatial weight matrix (contiguity vs. inverse-distance with a cut-off). It is also found that municipal debt in Poland suffers from high persistence over time. Keywords: municipalities, dynamic spatial Durbin model, debt persistence.</p>
</abstract>

The aim of the paper is to investigate spatial interactions among the debt of 2,442 municipalities in Poland over the period 2005–2020. Using the dynamic spatial Durbin model with two-way fixed effects, it provides empirical evidence of positive spatial interactions. It is estimated that an increase in debt per capita in a given municipality by PLN 100 is related to an increase in the debt per capita in neighbouring municipalities by PLN 8–10. The result is robust to the various specifications of spatial weight matrix (contiguity vs. inverse-distance with a cut-off). It is also found that municipal debt in Poland suffers from high persistence over time. Keywords: municipalities, dynamic spatial Durbin model, debt persistence.

Spatial interactions in local public debt. Evidence from Poland

Department of Public Finance, Institute of Finance

Poznań University of Economics and Business

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Spatial interactions in local public debt. Evidence from Poland"}

The aim of the paper is to investigate spatial interactions among the debt of 2,442 municipalities in Poland over the period 2005–2020. Using the dynamic...

Spatial interactions in local public debt. Evidence from Poland

Pubblicato online: 13 ott 2023

Pagine: 206 - 223

Ricevuto: 18 giu 2023

Accettato: 15 set 2023

DOI: https://doi.org/10.18559/ebr.2023.3.751

Parole chiave
municipalities, dynamic spatial Durbin model, debt persistence

© 2023 Monika Banaszewska, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Spatial interactions in local public debt. Evidence from Poland

Pubblicato online: 13 ott 2023

Pagine: 206 - 223

Ricevuto: 18 giu 2023

Accettato: 15 set 2023

DOI: https://doi.org/10.18559/ebr.2023.3.751

Parole chiavemunicipalities, dynamic spatial Durbin model, debt persistence

© 2023 Monika Banaszewska, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Parole chiave
municipalities, dynamic spatial Durbin model, debt persistence