Ursachen kommunaler Haushaltsdefizite

Abstract

This contribution investigates the exogenous and endogenous determinants of local government debts in Germany. The municipality cannot influence exogenous factors, whereas endogenous factors are largely driven by the local political competition and exhibit their effects mainly in the local context. Triangulation of different methods is used to reach robust results, encompassing both quantitative research methods and qualitative methods like case studies and interviews. The analysis can thus show, that the local debts are not only explained by socioeconomic, demographic, and income factors, but that political-institutional factors like the local constitutional law, the mayor's party affiliation and the size of the local council are also relevant. In addition, the case studies lend support to the hypothesis that consensus arrangements in the municipality lead to a better financial situation.