This article examines cost behaviour in a municipal (local government) setting and finds evidence of cost stickiness. We also find that costs are super-sticky as they increase even when revenues decrease. Municipals in New Zealand are required to produce forecasts, which allow us to investigate...

This paper examines cost behaviour in the municipal setting and finds evidence of cost stickiness. Furthermore, as municipals in New Zealand are required to produce forecasts, it allows us to investigate whether asymmetric cost behaviour is incorporated into forecasts. We document an asymmetric...

This paper provides an overview for understanding the concept of capital maintenance and its relation to measurement. While there is extensive prior literature on this issue the focus of this literature is to provide a taxonomy of various methods of inflation accounting. This paper summarises...