CHAOS OR TURBULENCE ON THE VOLATILITY OF PUBLIC REVENUES

Abstract

In an intuitive attempt to define financial distress in the public sector, it can be represented by the turbulence over the normal rhythm of indicators’ evolution in the public revenues, due to the influence of exogenous factors coming from the real economy, the behavior of taxpayers as well as to other influencing factors. This way of defining financial distress makes it possible to measuring its composing elements, such as: the turbulence and the influence of exogenous factors. The application of financial distress tests for the public budgetary indicators and the notification of its existence can be of real use for the central and local governments, taxation policy.

Keywords

• local government revenues
• public taxation
• financial distress