The objective of this research is to analyze whether the political-ideological situation of municipalities affects their debt level, considering evidence from Portugal for the period 2004 - 2013. A static panel data model is applied, incorporating factors such as political ideology,...

States merge small and medium sized municipalities to achieve economies of scale. Little is known to which extent mergers of large local governments reduce expenditures. I use the synthetic control method to identify the effect of mergers of county-sized administrations in Germany (districts) on...

Local governments are facing large losses in revenues and increased expenditures because of the COVID-19 crisis. We document a causal relationship between fiscal pressures induced by COVID-19 and the layoffs of state and local government workers. States that depend more on sales tax as a source...