An empirical analysis of capital assets condition ratio in local governments: the case of Florida counties
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 29 October 2021
Issue publication date: 9 March 2022
Abstract
Purpose
The main purpose of this paper is to examine the political, economic and institutional determinants of capital assets condition ratio in American local governments using government-wide financial statements.
Design/methodology/approach
Based on capital assets data from the period of 2011–2016 for the 66 Florida counties as reported on their government-wide financial statements, the authors use a panel two-way fixed effects estimation and a dynamic panel generalized method of moments estimation.
Findings
The authors find that social-economic factors, fiscal capacity and democratic voters explain the capital assets condition ratio in Florida county governments.
Research limitations/implications
The major findings of this study may only apply to county government in one single state. It may raise the issue of the external validity of our research. It provides policy recommendations for local public officials to maintain and upgrade their capital assets.
Originality/value
The study utilizes a new approach of capital assets condition ratio to measure county government investment in capital assets based on the government-wide financial statements.
Keywords
Citation
Wang, X. and Chen, C. (2022), "An empirical analysis of capital assets condition ratio in local governments: the case of Florida counties", Journal of Public Budgeting, Accounting & Financial Management, Vol. 34 No. 2, pp. 330-346. https://doi.org/10.1108/JPBAFM-01-2021-0013
Publisher
:Emerald Publishing Limited
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