Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30526
Monitoring the Fiscal Health of Taiwan’s Local Government: Application of the 10-Point Scale of Fiscal Distress

Authors: Yuan-Hong Ho, Chiung-Ju Huang


This article presents a monitoring indicators system that predicts whether a local government in Taiwan is heading for fiscal distress and identifies a suitable fiscal policy that would allow the local government to achieve fiscal balance in the long run. This system is relevant to stockholders’ interest, simple for national audit bodies to use, and provides an early warning of fiscal distress that allows preventative action to be taken.

Keywords: fiscal health, fiscal distress, monitoring signals

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1434


[1] F. Ladd, and J. Yinger, "America’s ailing cities: fiscal health and the design of urban policy,” Baltimore, MD: John Hopkins University Press, 1989.
[2] T. Clark, and L. Appleton, "Coping in American cities,” In S. Clarke (ed.), Urban Innovation and Autonomy (31-68). Newbury Park, CA: Sage Publications, 1989.
[3] S. Berry, "Sizing up State policy innovation research,” Policy Studies Journal, 1994, vol. 22, pp. 442-456.
[4] W. Lin, and K. Raman, "The housing value-relevance of governmental accounting information,” Journal of Accounting and Public Policy, 1998, vol. 17, pp. 91-118.
[5] M. Groves, W. Godsey, and M. Shulman, Evaluating Financial Condition: A Handbook for Local Government, 3rded,Washington, DC: The International City/County Management Association, 2003.
[6] P. Kloha, S. Carlo, and R. Kleine, "Developing and testing a composite model to predict local fiscal distress,” Public Administration Review, 2005, vol. 65, no. 3, pp. 313-323.
[7] Y. Badu, and S. Li, "Fiscal Stress in Local Government: A Case Study of the Tri-Cities in the Commonwealth of Virginia,”The Review of Black Political Economy, 1994, vol. 22, no. 3, pp. 5-17.
[8] K. Brown, "The 10-Point Test of Financial condition: Toward an Easy-To.Use Assessment Tool for Smaller Cities,” Government Finance Review, 1993, vol. 9, no. 6, pp. 21-26.
[9] R. Kleine, P. Kloha, and C. Weissert, "Monitoring local government fiscal health: Michigan’s new 10-point scale of fiscal distress,” Government Fiscal Review, 2003, vol. 19, no. 3, pp. l69-190.
[10] R. Hendrick, "Assessing and measuring the fiscal health of local governments: focus on Chicago suburban municipalities,” Urban Affairs Review, 2004, vol. 40, no. 1, pp. 78–114.
[11] X. Wang, L. Dennis, and Y. S. Tu, ‘‘Measuring financial condition: a study of U.S. States,’’ Public Budgeting and Finance, 2007, vol. 27, no. 2, pp.1-21.
[12] W. Krueathep, "Measuring municipal fiscal condition: the application of U.S.-based measures to the context of Thailand,” International Journal of Public Administration, 2010, vol. 33, pp.223-239.
[13] J. Martinez-Vazquez, and l. Boex, "Fiscal capacity: an overview of concepts and measurement issues and their applicability in Russian federation,” Working paper, 97-3, 1997, Georgia State University.
[14] S. Raju, "Analyzing the fiscal health of state governments in India: evidence from the 14 major states,” Public Budgeting and Finance, 2011, vol. 3, no. 3, pp. 49-72.
[15] S. Hakkio, and M. Rush, "Is the budget deficit "too large”?” Economic Inquiry, 1991, vol. 29, pp. 429-445.
[16] S. Cohen, M. Doumpos, E. Neofytou, and C. Zopounidis, 2012, "Assessing financial distress where bankruptcy is not an option: An alternative approach for local municipalities,” European Journal of Operational research, 2012, vol. 218, pp. 270-279.