Local Government Finance Data Analysis LOGFIN
|Coordinator||Örebro universitet - Handelshögskolan|
|Funding from Vinnova||SEK 3 254 154|
|Project duration||January 2015 - December 2018|
|Venture||Financial Market Research|
Purpose and goal
A collaboration between researchers, Kommuninvest (KI) and local and regional governments that use a finance-management software provided by KI. A national database for research has been compiled, and used for research and quarterly updated reviews of the sector’s financial status. The research studies the sector´s debt and risk management, KI’s role as lender of last resort and wider aspects of the sector’s funding and investment. It has also been part of a broad effort to strengthen the supply of competence within this area.
Expected results and effects
KI has compiled a database of the local and regional government sector’s financial transactions including data on more than 20 000 loans and derivatives for over 1000 municipalities, regions, and municipality-owned corporations. A quarterly summary of this information is presented on the web. The project has produced 12 research papers, of which as of yet 5 have been published in refereed journals and 5 are included as parts of three doctoral dissertations (of which two are completed). Spinoffs to education and intelligence within local-government finance.
Planned approach and implementation
Four WPs have been pursued. WP1 is compilation and regular update of the data base. In WP2 this data and bond price data has been used to characterize and analyze the local government debt and among others the response to the financial crisis. WP3 has studied aspects of assessment of risk in public/local govt investment. Studies in WP5 have examined how local government revenues and growth are affected by tax rates, expenditure composition and investments.