There is a high diversity in the possibility of raising funds for municipalities; in particular the possible sources of … revenue for financing the municipalities are high. There are certain ways of financing, which are represented in all … municipalities, regardless of their economic structure, the number of people or the country in which there are. But there are certain …

cult to fi nance necessary investments in infrastructure and transformation. While most municipalities should have suffi … cient leeway to deal with higher interest rates, highly indebted municipalities may be strongly aff ected by rising interest … rates. In these municipalities, interest costs are increasing strongly, budgetary margins are narrower anyway, and these …

the decentralisation of political structure but also significantly enhanced the fiscal autonomy of municipalities … belonging to these countries. Although the degree of self-governing ability of municipalities seems to vary from one country to … small-sized municipalities in the transition economies have suffered from financial bottleneck and have not been able to …

, and in 2001 the rules were relaxed for municipalities below 5,000 inhabitants. This institutional change allows us to … municipalities have lower real estate and income tax rates. Finally, we investigate the heterogeneity in policy responses across … municipalities to provide new evidence about the costs and benefits of restricting fiscal policy. The impact is larger if the mayor …