Using FGLS to Evaluate the Factors Influencing the Budget Deficit of Municipalities
The municipal budget deficit leads to the pressure to provide resources from unsustainable methods. Budget settlement reports of municipalities in Iran indicate that their budget deficits are mainly financed by ‘excess building density tolls’, ‘revenues from land use change’, ‘selling properties’, ‘...
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| Main Author: | |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Isfahan
2024-08-01
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| Series: | اقتصاد شهری |
| Subjects: | |
| Online Access: | https://ue.ui.ac.ir/article_29284_0fcd7d3a7ec87695a1d327bec61b02a9.pdf |
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| Summary: | The municipal budget deficit leads to the pressure to provide resources from unsustainable methods. Budget settlement reports of municipalities in Iran indicate that their budget deficits are mainly financed by ‘excess building density tolls’, ‘revenues from land use change’, ‘selling properties’, ‘parking removal tolls’, and ‘loans’, which are unsustainable sources in the sense that they destroy the living resources which belong to future generations. The most important factors influencing these sources are: ‘land price’, ‘regional GDP per capita’, ‘the number of issued building permits, and ‘inflation’. In this study, we have used the FGLS method to evaluate the effects of the variables mentioned above on the budget deficits of municipalities in Tehran, Tabriz, Ahwaz, Shiraz, Qom, Mashhad, Karaj, and Rasht during 1390-1397. Our findings in both methods indicate that land price and the number of issued building permits positively affect municipal budget deficits, while regional GDP per capita and inflation negatively affect them. According to this result, the municipal budget deficit is counter-cyclical. Thus, during recessions, policymakers are required to take some measures to prevent municipal budget deficits from growing. |
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| ISSN: | 2588-4867 |