FINANCIAL AUTONOMY OF LOCAL GOVERNMENTS AS A DETERMINANT OF PUBLIC SERVICES QUALITY

Many studies point to the fact that the quality of public services directly determines the subjective perception of the quality of life of individuals. Taking into account the local conditions in the provision of public services and the implementation of the decentralization processes in general allow more intensive consideration of citizen's needs. The paper examines the relationship between financial indicators representing the financial autonomy of local governments and the subjective perception of the quality of public services by citizens, with respect to the assumption that local governments with a higher proportion of expenditures covered by revenues from their own taxes exhibit more effective behaviour in the provision of public services. Using econometric modeling, the paper examines factors that satisfy the demand of citizens for quality public services. The results of the models suggest that the satisfaction with the quality of public services is increasing with the growing economic level of the municipality and with increasing spending on public services by local governments.