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August 14, 2026Public Finance and Management

Linking Government Capacity to Strategic Municipal Responses: A Multidimensional Framework for Fiscal Resilience

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Authors

THTrang HoangCMCraig S. MaherESElizabeth A. M. Searing

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Overview

Survey analysis reveals that administrative and financial capacities differentially drive crisis adaptation and prevent retrenchment in municipalities, highlighting pathways to fiscal resilience.

Key Points

  • To examine how five dimensions of municipal capacity—financial management, human resources, strategic planning, communication, and information technology—influence local government response strategies during severe fiscal shocks.
  • Gathered original survey data from local municipalities across Nebraska and Texas during the COVID-19 pandemic.
  • Modeled multidimensional capacity effects on retrenchment and adaptation strategies using Partial Least Squares Structural Equation Modeling (PLS-SEM).
  • Municipalities with higher administrative capacities in information technology, human resources, and strategic planning were more likely to implement proactive revenue expansion and adaptive management measures.
  • Governments with stronger financial management capacity exhibited significantly lower likelihoods of resorting to budget retrenchment and short-term fixes like deferred maintenance.

Cite This Study

Hoang et al. (2026) studied this question.

synapsesocial.com/papers/6a7ec78db70b84ec8b913fafhttps://doi.org/10.1177/15239721261473954
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