Determinants of Local Governments’ Transparency in Times of Crisis: Evidence From Municipality-Level Panel Data

Tejedo-Romero, F., & de Araujo, J. F. F. E. (2018). Determinants of Local Governments’ Transparency in Times of Crisis: Evidence From Municipality-Level Panel Data. Administration and Society, 50(4), 527–554. https://doi.org/10.1177/0095399715607288This episode explores the impact of the 2008 global financial crisis on local government transparency in Spain. The crisis led to economic downturns, rising unemployment, and financial constraints on municipalities, increasing pressure for greater transparency in resource management.According to Tejedo-Romero and Araujo (2015), transparency in Spanish municipalities improved from 2008 to 2012, with the most significant increase in 2012, an election year. Political factors, such as gender representation, voter participation, and political strength, played a key role in this shift.Supported by Agency and Legitimacy Theories, the study suggests that citizen pressure reduced information asymmetry while municipalities sought legitimacy through transparency. Economically, unemployment negatively impacted transparency, whereas the growing presence of women in municipal councils had a positive effect. This episode delves into how economic crises influence governance, shedding light on the interplay between financial constraints, political dynamics, and transparency.