H71 - State and Local Taxation, Subsidies, and RevenueReturn

An increase in municipal financial autonomy in Slovakia in connection with the fiscal decentralization during the monitored period 2000–2016 is observable after its implementation (2005) with a certain derogation in the period of the financial crisis (2009). The aim of the paper is to point out its formal increase through vertical fiscal imbalance. It is caused by the dominant position of shared tax revenues in the municipal budgets. Dumitrescu-Hurlin Panel Granger Causality test confirms a relationship between municipal financial autonomy and vertical fiscal imbalance, which points to a transfer dependency of municipalities on central government. Using the cross-correlation, the expected inverse relation between analysed categories is confirmed in the current period. Statistically significant positive correlation coefficients in the case of lag order point to important timing focusing on the period of implementation of reforms and certain economic effects, e.g., financial crisis and economic recovery.

Municipalities in the Slovakia as part of public sector have to finance their needs in accord of legally set municipal budgeting principles. The general basic rule mentions that current needs have to be financed from current budget. Capital or investment expenditure can be financed by returnable resources. Using returnable finance resources induces the indebtedness. Although the state level of government is not responsible for the indebtedness incurred on municipal level, usually limits the municipal indebtedness by law and monitors the total municipal debt and debt service. The paper deals with municipal indebtedness in the SR, where total municipal debt is involved to econometric investigation in aim to identify its determinants. Estimated GMM dynamic panel model includes time effects and reveals significant positive influence of capital revenues, debt service and lagged debt. Significant is negative impact of unemployment rate and financial autonomy. Time effects are significant in period of 2003-2004 (extensive indebtedness of certain cities), 2008-2010 (effects of public sector reform and previous economic expansion) 2011(delayed impact of financial crisis) and 2012-2014 (economic recovery).

Brownfields are old, unused sites and buildings located in urban areas and open countryside. This article deals with problems of brownfields that developed as a result of restructuring national industry, a decreased significance of primary and secondary industry, and the increase of tertiary industry. The main part of the article provides a complex evaluation of the costs and benefits connected with brownfields regeneration in comparison with building on greenfields. The presented model evaluates both alternatives from the municipality, investor and public interest points of view. In a conclusion, there is given a recommended procedure for brownfields regeneration. The first step is to create a database of brownfields which will be later followed by the evaluation of identified brownfields according to attractiveness for investors, usability of individual brownfields from the point of view of land use planning and also the search of financial resources for regeneration and evaluation of economic efficiency of brownfields revitalization.