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

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dc.contributor.advisorKantor, Brianen_ZA
dc.contributor.authorSolomon, Daviden_ZA
dc.date.accessioned2016-08-11T09:48:43Z
dc.date.available2016-08-11T09:48:43Z
dc.date.issued1983en_ZA
dc.descriptionBibliography: pages 171-176.en_ZA
dc.description.abstractThis 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.identifier.apacitationSolomon, 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/11427/21174en_ZA
dc.identifier.chicagocitationSolomon, 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/11427/21174en_ZA
dc.identifier.citationSolomon, D. 1983. The economic and financial policies of local governments in South Africa : a theoretical analysis. University of Cape Town.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
dc.identifier.urihttp://hdl.handle.net/11427/21174
dc.identifier.vancouvercitationSolomon 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/11427/21174en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomicsen_ZA
dc.subject.otherlocal governmenten_ZA
dc.titleThe economic and financial policies of local governments in South Africa : a theoretical analysisen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMAen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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