Debt study in the Portugal Local Administration: empirical evidence using panel data analysis models Hot

The purpose of this research is to identify, based on the period 2004 to 2009, the determinant factors of the Portuguese
municipalities’ debt level, trying to understand which ones affect it and in what way.
Institutional, political, fiscal and financial‑economic factors are studied. A methodology of panel data treatment is applied to all municipalities of Lisbon region. This
methodology appears as adequate to the study intended to be developed, since it allows simultaneously analysing inter‑municipalities
variations (cross‑sectional dimension) as well as along time (time series dimension). Findings indicate that the most important factors in determining the debt level
of the municipalities of Lisbon region are the tourist capacity and capital revenues.