This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Citation Map Services Email this article to a friend Similar articles in this journal Similar articles in Web of Science Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Web of Science (1) Citing Articles via Google Scholar Citing Articles via Scopus Google Scholar Articles by Clinger, J. C. Articles by Park, H.-J. Search for Related Content Social Bookmarking                         What's this?

Turnover, Transaction Costs, and Time Horizons

An Examination of Municipal Debt Financing

Murray State University

Richard C. Feiock

Florida State University, Tallahassee

Barbara Coyle McCabe

Arizona State University, Phoenix, barbara.mccabe{at}asu.edu

Hyung-Jun Park

Sungkyunkwan University

This article explores the consequences that local government institutions and turnover among local government officials have for local borrowing. We outline how turnover affects choices in policy arenas involving public and private sector actors, long-term obligations, or future commitments. Turnover creates political uncertainty that alters the time horizons of local leaders as well as the transaction costs involved in the floating of bond issues. Empirical analysis of city borrowing patterns in the late 1980s provides evidence that turnover of council members and managers in council—manager cities increases municipal debt burdens. However, turnover of chief administrative officers in mayor—council cities is associated with less city borrowing.

Key Words: administrative turnover • municipal government • debt • time horizons

The American Review of Public Administration, Vol. 38, No. 2, 167-179 (2008)
DOI: 10.1177/0275074007305606


CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    Technorati    Twitter    What's this?