Development of Local Government Debt Financing Markets: Application of a Market‐Based Framework

Needed is clear guidance on how to develop market‐based debt financing systems in transitional and developing countries. We propose an analytical framework useful for identifying constraints to financial development and providing recommendations to overcome constraints to develop municipal financing capacity. The proposed framework is applied to five country case studies: Indonesia, Mexico, Philippines, Poland, and South Africa. The thesis of this paper is that municipal credit market development is related to improvements in the legal/regulatory framework governing local borrowing, the capacity of financial institutions to assess risk, and borrower capacity to support and manage debt.     

DISTANCE DECAY REEXAMINED

The "journey to crime," or the study of the distance between an offender's residence and offense site, has been a subject of study within criminology for many years. Implications arising from such research touches the majority of criminological theories. An overriding conclusion from this line of research is that most crimes occur in relatively close proximity to the home of the offender. Termed the distance-decay function, a plot of the number of crimes that an offender commits decreases with increasing distance from the offender's residence. In a recent paper, Van Koppen and De Keijser raise the concern that inferring individual distance decay from aggregate-level data may be inappropriate. They assert that previous research reporting aggregated distance-decay functions conceals individual variations in the ranges of operation, which leads them to conclude that the distance-decay function is an artifact. We do not question the claim that researchers should not make inferences about individual behavior with data collected at the aggregate level. However, Van Koppen and De Keijser's analysis raises four important issues concerning (1) the interpretation of the ecological fallacy, (2) the assumption of linearity in offender movements, (3) the interpretation of geographic work on profiling, and (4) the assumption of random target selection within a delimited range of operation. Using both simulated and nonsimulated data, we present evidence that reaches vastly different conclusions from those reached by Van Koppen and De Keijser. The theoretical implications of our analyses and possibilities for future research are addressed.     

ORGANIZATIONAL STRATEGY,EXTERNAL REGULATION AND PUBLIC SERVICE PERFORMANCE

We test the separate and joint effects of strategy and regulation on public service performance. Strategy is measured as the extent to which service providers are prospectors, defenders and reactors. Regulation is assessed on the basis of the number of inspection events and service managers’ perceptions of the supportiveness of regulators. We find that, controlling for prior performance and the level of service expenditure, prospecting is a more successful strategy than defending or reacting. In addition, inspection events generally disrupt the relationship between strategy and performance, but regulation that is supportive reinforces this relationship. The evidence suggests that the impact of organizational strategies in the public sector is contingent on the characteristics of regulatory regimes.