Possibility to use models for evaluation of financial solvency of local self-governments
Annotation: Modelling of processes, which are increasingly being applied in public administration,
enables the collection and analysis of data and the creation of explanatory models. These models allow
to capture the real state of the situation, identify influencing factors, and determine other effective
procedures. Models, including also prediction, make it possible to identify, for example, the bad
financial development of a subject in time. These trends are also reflected at the level of local selfgovernments,
especially in the area of financial management. The implementation of international
accounting standards in 2008 facilitated comparisons of the financial performance of local selfgovernments
within one country and also on the international level. The most complicated part of
modelling is to investigate causal relationships between individual financial indicators and quantify the
effects of these individual indicators. The theoretical part will be focused on models of financial
situation evaluation of municipalities and regions. The empirical part will be to evaluate the
development of indicators at the level of local self-government in selected countries.
Aim: The dissertation thesis will aim to evaluate the financial management of local self-governments
in selected countries through selected types of models. The analysed countries, as well as models
assessing the financial standing of local self-governments, will be selected by the student based on the
theoretical background of the dissertation thesis.