Political Stubbornness and Online Local Budget Transparency in Croatia

Online local budget transparency (OLBT) has been recognized as an important feature of good governance. Accordingly, in this paper, OLBT is measured in all 128 cities and a sample of 100 municipalities in Croatia using several key local budget documents published on local government websites. Using...

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Main Authors: Katarina Ott, Velibor Mačkić, Mihaela Bronić
Format: Article
Language:deu
Published: Faculty of Economics University of Rijeka 2019-12-01
Series:Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu
Subjects:
Online Access:https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/01-Ott-Mackic-Bronic-2019-2.pdf
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author Katarina Ott
Velibor Mačkić
Mihaela Bronić
author_facet Katarina Ott
Velibor Mačkić
Mihaela Bronić
author_sort Katarina Ott
collection DOAJ
description Online local budget transparency (OLBT) has been recognized as an important feature of good governance. Accordingly, in this paper, OLBT is measured in all 128 cities and a sample of 100 municipalities in Croatia using several key local budget documents published on local government websites. Using a fixed effect Poisson panel model covering the 2013-2017 period, it is shown that along with residents’ income and fiscal capacity of local governments, political ideology and political competition determine the level of OLBT. This paper contributes to the growing body of budget transparency literature by establishing the importance of political factors as determinants of OLBT in this former socialist, fiscally centralized EU member state and reveals the curious stubbornness of the citizens who consistently vote for non-transparent politicians. The main finding is that political factors (political ideology and political competition) matters in determining OLBT, resulting in suboptimal equilibrium of local governments with low levels of OLBT. The local incumbent concludes that OLBT is not a high priority and that his/her constituency will not hold it against him/her. In this environment such a conclusion stands owing to the fact that voters who are stubborn in their voting patterns refuse to change the incumbent who created nontransparency.
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spelling doaj.art-f231080269fa45f19764ffc7523e04582022-12-22T00:11:13ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80041846-75202019-12-0137255358510.18045/zbefri.2019.2.553Political Stubbornness and Online Local Budget Transparency in CroatiaKatarina Ott0https://orcid.org/0000-0003-2242-4181Velibor Mačkić1https://orcid.org/0000-0002-3200-8571Mihaela Bronić2https://orcid.org/0000-0002-0863-2040public sector economicscompetitiveness analysis, new political economy, political cyclesfiscal decentralization and development, tax system, budget transparencyOnline local budget transparency (OLBT) has been recognized as an important feature of good governance. Accordingly, in this paper, OLBT is measured in all 128 cities and a sample of 100 municipalities in Croatia using several key local budget documents published on local government websites. Using a fixed effect Poisson panel model covering the 2013-2017 period, it is shown that along with residents’ income and fiscal capacity of local governments, political ideology and political competition determine the level of OLBT. This paper contributes to the growing body of budget transparency literature by establishing the importance of political factors as determinants of OLBT in this former socialist, fiscally centralized EU member state and reveals the curious stubbornness of the citizens who consistently vote for non-transparent politicians. The main finding is that political factors (political ideology and political competition) matters in determining OLBT, resulting in suboptimal equilibrium of local governments with low levels of OLBT. The local incumbent concludes that OLBT is not a high priority and that his/her constituency will not hold it against him/her. In this environment such a conclusion stands owing to the fact that voters who are stubborn in their voting patterns refuse to change the incumbent who created nontransparency.https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/01-Ott-Mackic-Bronic-2019-2.pdfonline budget transparencylocal governmentcroatiapolitical economypanel data model
spellingShingle Katarina Ott
Velibor Mačkić
Mihaela Bronić
Political Stubbornness and Online Local Budget Transparency in Croatia
Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu
online budget transparency
local government
croatia
political economy
panel data model
title Political Stubbornness and Online Local Budget Transparency in Croatia
title_full Political Stubbornness and Online Local Budget Transparency in Croatia
title_fullStr Political Stubbornness and Online Local Budget Transparency in Croatia
title_full_unstemmed Political Stubbornness and Online Local Budget Transparency in Croatia
title_short Political Stubbornness and Online Local Budget Transparency in Croatia
title_sort political stubbornness and online local budget transparency in croatia
topic online budget transparency
local government
croatia
political economy
panel data model
url https://www.efri.uniri.hr/upload/ZBORNIK%202_2019/01-Ott-Mackic-Bronic-2019-2.pdf
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AT velibormackic politicalstubbornnessandonlinelocalbudgettransparencyincroatia
AT mihaelabronic politicalstubbornnessandonlinelocalbudgettransparencyincroatia