The economic and financial policies of local governments in South Africa : a theoretical analysis

 

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dc.contributor.advisor Kantor, Brian en_ZA
dc.contributor.author Solomon, David en_ZA
dc.date.accessioned 2016-08-11T09:48:43Z
dc.date.available 2016-08-11T09:48:43Z
dc.date.issued 1983 en_ZA
dc.identifier.citation Solomon, D. 1983. The economic and financial policies of local governments in South Africa : a theoretical analysis. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/21174
dc.description Bibliography: pages 171-176. en_ZA
dc.description.abstract This thesis is a theoretical enquiry into the financial policies of local governments in South Africa. The basic principles governing this issue are presented in Chapter Six. The theory of corporate debt capacity is drawn upon and an analogous model of local government debt capacity is presented. The Modiglian/Miller approach is adapted, and the conclusions of this model applied in the local government context. The implication is drawn that local government officials see the incurment of debt as increasing the financial riskiness of the local area, just as corporate executives see corporate debt as increasing the riskiness of the firm. It is hypothesised that local governments which are very loosely linked, politically and economically, to the people they serve will be more risk averse than fiscally or electorally sensitive governments, and will display greater reluctance to incur debt. In so doing, they will sacrifice opportunities to improve the area by favourable capital development, financed by a judicious combination of debt and current revenue. Current available data on a cross section of local governments is presented which tentatively confirms this hypothesis. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Economics en_ZA
dc.subject.other local government en_ZA
dc.title The economic and financial policies of local governments in South Africa : a theoretical analysis en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department School of Economics en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MA en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Solomon, D. (1983). <i>The economic and financial policies of local governments in South Africa : a theoretical analysis</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/21174 en_ZA
dc.identifier.chicagocitation Solomon, David. <i>"The economic and financial policies of local governments in South Africa : a theoretical analysis."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 1983. http://hdl.handle.net/11427/21174 en_ZA
dc.identifier.vancouvercitation Solomon D. The economic and financial policies of local governments in South Africa : a theoretical analysis. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 1983 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/21174 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Solomon, David AB - This thesis is a theoretical enquiry into the financial policies of local governments in South Africa. The basic principles governing this issue are presented in Chapter Six. The theory of corporate debt capacity is drawn upon and an analogous model of local government debt capacity is presented. The Modiglian/Miller approach is adapted, and the conclusions of this model applied in the local government context. The implication is drawn that local government officials see the incurment of debt as increasing the financial riskiness of the local area, just as corporate executives see corporate debt as increasing the riskiness of the firm. It is hypothesised that local governments which are very loosely linked, politically and economically, to the people they serve will be more risk averse than fiscally or electorally sensitive governments, and will display greater reluctance to incur debt. In so doing, they will sacrifice opportunities to improve the area by favourable capital development, financed by a judicious combination of debt and current revenue. Current available data on a cross section of local governments is presented which tentatively confirms this hypothesis. DA - 1983 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 1983 T1 - The economic and financial policies of local governments in South Africa : a theoretical analysis TI - The economic and financial policies of local governments in South Africa : a theoretical analysis UR - http://hdl.handle.net/11427/21174 ER - en_ZA


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