A Comparison of Financial Indicators: The Case of Detroit

Financial condition analysis is a critical task for public managers, but it is still unclear which indicators are the most salient measures of financial well‐being. The financial health of Detroit, Michigan is unequivocally poor, providing an interesting case to evaluate the financial condition indi...

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Bibliographic Details
Published inPublic budgeting & finance Vol. 35; no. 4; pp. 90 - 111
Main Authors Stone, Samuel B., Singla, Akheil, Comeaux, James, Kirschner, Charlotte
Format Journal Article
LanguageEnglish
Published Malden Blackwell Publishing Ltd 01.12.2015
Subjects
Bankruptcy
Economic crisis
Financial performance
Indexes
Municipal finance
Public finance
Social welfare
Detroit Michigan
United States > US
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Summary:Financial condition analysis is a critical task for public managers, but it is still unclear which indicators are the most salient measures of financial well‐being. The financial health of Detroit, Michigan is unequivocally poor, providing an interesting case to evaluate the financial condition indicators that currently exist. We calculate the key financial indicators using data from Detroit over the last 11 years. We find the indicators fall into three groups: those that show no sign of impending financial crisis, those that show a steady worsening financial condition, and those that demonstrate a substantial change immediately prior to filing bankruptcy.
Bibliography:ark:/67375/WNG-77MQLWNZ-L
ArticleID:PBAF12079
istex:B85709EE6050AE68DF201EF657DE4D197DE0FAC7
ISSN:0275-1100
1540-5850
DOI:10.1111/pbaf.12079