1887

n IMIESA - Borrowing explained : fast lane

Volume 31, Issue 9
  • ISSN : 0257-1978
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Abstract

Extracted from text ... 56 - IMIESA SEPTEMBER 2006 My late professor once said "there is a theoretical explanation to every phenomenon". This prompted me to investigate why municipalities borrow funds. Some theoretical justifications can be found in three theories: public choice, pluralism and Marxism, which expand on the issue of municipal debt. Public choice theory of municipal debt The public choice theory is a branch of economics that developed from the study of taxation and public spending. Economists who study behaviour in the private marketplace assume that people are motivated mainly by self-interest. Public choice economists make the same assumption, that is, ..

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/content/imiesa/31/9/EJC43850
2006-09-01
2016-12-10

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