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FINANCIAL EFFECTS OF ESTABLISHING A PUBLIC OFFICE OR PUBLIC ENTERPRISE
Author(s) -
Friedrich Peter,
Wonnemann HeinrichGünther
Publication year - 1985
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1985.tb00850.x
Subject(s) - private enterprise , cash flow , position (finance) , business , finance , cash
This paper deals with the effects on municipal budgets of establishing public offices or enterprises. The methodology described can assist with locational decisions and quantifies employment, income, and financial effects with the help of a macroeconomic model. A measure for changes in the cash flow position of a town is also introduced. Two examples — the establishment of a district heating firm and a concert hall — demonstrate different financial effects arising from the contrasting characteristics of each enterprise and the nearby towns most affected. Whereas the district heating firm increases the municipal cash flow, a reduction results from the establishment of the hall.