Article

 

FINANCIAL EFFECTIVENESS OF MUNICIPALITIES IN GREECE AND THE USE OF MODERN FINANCIAL TOOLS (p.11-28)

by

Christos PALLIS, Hellenic Open University

Petros PALLIS, UNIVERSITY OF PIRAEUS

Keywords : Municipalities, Financial Effectiveness, Funding, Financial Tools, Empirical Investigation, Greece

JEL classification : Q3, Q4

Abstract

Municipalities are autonomous economic and administrative entities, with common actions and responsibilities. The primary aim of this survey is to investigate and observe phenomena and views related to issues concerning Greek municipalities, such as the financial problems they face and which is the funding scheme they prefer. The entire sample of municipalities in Greece has been separated into categories, based on the effectiveness of financial management and financial performance into effective and ineffective ones. In this study, we investigated the existence of differences between the characteristics of these two categories. The main objective is to investigate the views of Mayors in each Municipality as regards the influence of financial effectiveness on: (a) which is the most important source of finance, (b) which is the most important financial instrument and (c) which is the financing instrument that would prefer to use.