|M.Sc Student||Lanksner Anat|
|Subject||The Crisis of Local Authorities in Israel - The basic Law of|
|Department||Department of Industrial Engineering and Management||Supervisor||Dr. Avner Ahituv|
|Full Thesis text - in Hebrew|
The main objective of this work is to examine if and how we can bring about a different budgeting system that will prevent or drastically reduce the occurrence of local crisis in the local authorities.
This work is comprised of three parts: a theoretical one , an empirical one and inference of conclusions.
Within the theoretical part of the work , we will define the dimensions of the economic crisis , as a continuous process and well as a macro-problem.
Within the empirical part of the work , we will estimate equations for each of the current deficit per capita , the burden of loans per capita and general grant per capita , during the examined period 2001-2004.
The explanatory variables in the research equations are the number of inhabitants in the authority , the number of households , the category of authority , for the purpose of distinction between a municipality and a council , the nationality of the authority for distinction between a Jewish- and non-Jewish , the geographical location of the authority , its socio -economic weight etc.
The main findings found in this work are that an expansion has occurred in the average current deficit per capita in the local authorities in 2003 and a massive growth in the average current deficit , was found for non- Jewish authorities , this year.
An affirmative action was found to have occurred during the year 2003-2004 on behalf of the central government towards small authorities and towards those who are non- Jewish , regarding the rate of grants transferred to the authorities within the general grant allocation.
In addition , regarding all variables explained in the examined era , an affirmative action had occurred on behalf of the central government towards peripheral-located authorities in the north and south.
The finding of the data specified above are in accordance and empirically support a new thinking direction: establishing a basic law of local authorities which main principles are : establishing the measure of independence an authority has and the manner its finance.