Journal of Scientific Papers


© CSR, 2008-2019
ISSN 2071-789X

91th percentile
Powered by  Scopus

Directory of Open Access Journals (DOAJ)

Strike Plagiarism

  • General Founder and Publisher:

    Centre of Sociological Research


  • Publishing Partners:

    University of Szczecin (Poland)

    Széchenyi István University, (Hungary)

    Mykolas Romeris University (Lithuania)

    Alexander Dubcek University of Trencín (Slovak Republic)

  • Membership:

    American Sociological Association

    European Sociological Association

    World Economics Association (WEA)




Relationship between fiscal sustainability and efficiency: Evidence from large cities in Poland

Vol. 14, No 3, 2021

Katarzyna Wojtowicz


Maria Curie-Skłodowska University of Lublin,Faculty of Economics, Lublin, Poland


Relationship between fiscal sustainability and efficiency: Evidence from large cities in Poland


Sabina Hodzic


University of Rijeka,Faculty of Tourism and Hospitality Management, Opatija, Croatia




Abstract. Fiscal sustainability should be defined in the relation between public finances and sustainable economy. It requires a fiscal policy aimed not only at a fiscal balance, but also at the well-being of future generations, while taking the economic, social, environmental and institutional dimensions into account. The objective of this paper is to examine the relationship between fiscal sustainability and efficiency on the example of large cities in Poland in the period from 2008 to 2019. In order to obtain empirical results, a data envelopment analysis and panel data analysis were applied, and a fiscal sustainability index was constructed by means of a multidimensional approach. Based on a sample of 66 large cities in Poland, the results showed that there is a negative relationship between fiscal sustainability and efficiency. These results, however, relate to a specific period in the history of Polish cities when the local debt limits were tightened. The improvement in efficiency allowed local government units to allocate saved local expenditures to the partial repayment of previously incurred local debts. By doing so, Polish cities fulfilled tightened fiscal rules, but their service-level solvency decreased.


Received: March, 2021

1st Revision: May, 2021

Accepted: August, 2021


DOI: 10.14254/2071-789X.2021/14-3/9

JEL ClassificationH70, H72

Keywords: fiscal sustainability, local government, panel data analysis, data envelopment analysis