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The Financial Condition of American’s Large Cities

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posted on 01.08.2019, 00:00 authored by Xiaoheng Wang
This dissertation contributes to a better theoretical understanding of the complexities of financial condition process. Also, this dissertation uses data from government-wide financial statements to measure municipal financial condition, which can better evaluate the overall fiscal health of the governments as well as compare, analyze, and explain the financial condition in a more accurate and comprehensive manner. The results from the panel two-ways fixed-effects regression show that cities with more stringent state-imposed Tax and Expenditure Limitations (TELs) tend to have smaller government-wide cash reserves in the short-term but are more likely to excessively rely on debt, therefore facing difficulty in the payment of long-term liabilities. Second, an increased degree of state-local revenue decentralization is significantly associated with lower budget solvency and higher long-term solvency among cities; while an increased degree of state-local expenditure decentralization leads to higher levels of city cash solvency and lower levels of city long-term solvency. Finally, municipalities with more intergovernmental aid are likely to increase cash holdings but may experience unbalanced budgets and more financing responsibilities in the future.



Wu, Yonghong


Wu, Yonghong


Public Administration

Degree Grantor

University of Illinois at Chicago

Degree Level


Degree name

PhD, Doctor of Philosophy

Committee Member

Hendrick, Rebecca Merriman, David Siciliano, Michael Pagano, Michael Maher, Craig

Submitted date

August 2019

Thesis type




Issue date


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