Local Government Finance Data Analysis (LOGFIN)

Based on a new and unique database on financial transactions by Swedish sub-nationals and their subsidiaries, and other data sources, we will address a range of issues concerning the financial status, development and strategic challenges of local governments. This includes: a) Determinants of financial key figures and the use of derivatives. The importance of market conditions on interest rate and capital commitment choices. Financial risks within the sub-national sector. What explains differences in spreads in the corporate and municipality bond market? b) Covariance and the risk of municipal investments and bonds: implications for procurement and contracting; innovative financial instruments; vulnerability. c) Developing a two-country DSGE forecasting model of the Swedish sub-national finances that separates the sub-national sector from the rest of the economy. d) Using spatial econometric modelling to address questions such as: Is there a growth hill (Laffer curve) in terms of local taxes and expenditures? How sensitive are localities to shocks and what is the effect on local growth? Local Government Finance Data Analysis (LOGFIN) is collaboration between Kommuninvest, the largest creditor to Swedish sub-national governments, and Örebro University. The primary aim of this partnership is to facilitate research concerning Swedish sub-national government's debt management and finances and thereby to improve decision making on both sub-national and national levels in Sweden and elsewhere.