Chiades, Paolo; Greco, Luciano; Menegotto, Vanni; … - Dipartimento di Scienze Economiche "Marco Fanno", … - 2015
In this paper we investigate how tightening fiscal constraints (e.g., through intergovernmental transfer cuts) can lead local governments to postpone investments’ payments. We first provide a simple model showing how local governments can use arrears to relax their short-run financial...