자치단체 유형별 민간등이전비용과 그 구성요소가 부채비율에 미친 영향

Effects of the Cost of Transfer to the Private Sector on the Ratio of Liability in Different Types of Local Governments

This study investigates on how the cost of transfer to the private sector affects the ratio of the liability in different types of local governments by employing a panel dataset of local governments from 2008 to 2015 in Korea. Local governments provide subsidies to the private sector in order to support public services in the name of the cost of transfer to the private sector. If local governments provide generous subsidies to the private sector, it will lead to an inefficient resource allocation as well an increase of debt or liability. The findings of this study show that, first, the cost of transfer to the private sector does not appear to result in an increase of liability in most types of local government except for ward (district). Second, major components of cost of transfer to the private sector have a different impact on the local liabilities. While an increase of subsidies leads to an increase of liability in ward districts, it does not have any impacts on the rest type of local governments. Overall, the results of this study demonstrate that the cost of transfer to the private sector does not have a significant impact on the liability in local governments except for ward. Future study could further test the topic in detail.