TY - JOUR AU - Kosek-Wojnar, Maria AU - Maj-Waśniowska, Katarzyna PY - 2019/03/25 Y2 - 2024/03/29 TI - Determinants of choice in the form of conducting municipal economy by local government units JF - Journal of Public Governance JA - PG VL - 46 IS - 4 SE - Articles DO - 10.15678/ZP.2018.46.4.07 UR - https://publicgovernance.pl/zpub/article/view/489 SP - 92-107 AB - <p><em>Objectives</em>: This paper aims to address a problem that includes the managing of the municipal economy by local government units (LGUs). The research issue raised regarded, in particular, the rules and organisational-legal norms for managing a municipal economy. Its expression is the posed hypothesis according to which what matters significantly for LGUs in the choice of form for conducting a municipal economy is both the character of the task as well as whether this form is recognised as a subject of the public finances sector, and, what follows, whether its indebtedness is subject to statutory restrictions and influences the financial situation of LGUs.</p><p><em>Research Design &amp; Methods</em>: To verify a hypothesis formulated in such a way, firstly theoretical and legal aspects of managing a municipal economy by LGUs have been put forward. Next a&nbsp; comparative analysis for forms of managing a municipal economy by LGUs was conducted, i.e. a local self-government budgetary establishment and a municipal company, and the most&nbsp; significant characteristics of the discussed forms, as well as their effects being a result of their choice by LGUs, were indicated. Comparative and descriptive analysis has been used in this paper; it included analysis of financial data regarding the management of a municipal economy by LGUs, but in strict correlation with institutional and legal conditions for the realisation of public tasks and their conditioning.</p><p><em>Findings</em>: As a result of the research conducted, it has been concluded that changes taking place in the scope of forms of managing a municipal economy point towards more and more common&nbsp; tasks realised by LGUs both in the field of public utility as well as outside of the public utility zone in the form of commercial law companies.</p><p><em>Contribution</em>: Basic kinds of risks associated with the realisation of tasks by the budgetary establishment and municipal company have also been defined. Moreover, research results show that possibilities for such a wide operation result first and foremost from imprecise legal regulations, which are at the same time the only source of risk associated with the operation of such companies. </p> ER -