Prague Economic Papers 2023, 32(4):389-410 | DOI: 10.18267/j.pep.837

Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons

Filip Hrůza ORCID...a
a Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic

From the general perspective, municipalities are economic organisations like private companies with their legal subjectivity, own revenues, and property. To better understand their financial management, it is desirable to conduct relevant empirical research, which lacks in the case of the Czech municipal sector and Czech municipalities. This paper aims to analyse and identify the financial behaviour of Czech municipalities within the post-crisis period focusing on the influence of internal and external vulnerability factors. The panel data and linear regression model (fixed-effect model) were used to evaluate how an external crisis affected the financial management of municipalities. The behaviour of municipal financial management is reflected through financial health, financial dependency, or budget rigidity. The outcomes of the analysis are presented and put into perspective with relevant international research.

Keywords: municipality, financial management, financial health, financial dependency, budget rigidity
JEL classification: H20, H71, H79

Received: February 17, 2022; Revised: March 18, 2023; Accepted: April 17, 2023; Prepublished online: April 19, 2023; Published: August 24, 2023  Show citation

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Hrůza, F. (2023). Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons. Prague Economic Papers, 32(4), 389-410. doi: 10.18267/j.pep.837
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