Armenia, Stefano with Moreno Angelini, Alessandro Nanni and Fabrizio Baldoni, "Securitization of future credits in a Public Administrations tax-collection process: a System Dynamics approach", 2006 July 23-2006 July 27

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The distinctive role of a delocalized peripheral Public Administration is nowadays commonly acknowledged to be mostly consisting in providing services to its community of citizens. In order to accomplish this mission, the local administration has the evident and constant need of a certain cash amount, which should be basically ensured by incomes due to taxes imposed on citizens and that should hopefully require a regular and continuous cash flow. The last aspect represents a condition which usually is absolutely important and even necessary in order to properly and effectively schedule and manage the services that are then to be provided. Thus, in a complex and evolving legislative and administrative context such as the Italian one, this paper will try to state and show, by means of a system dynamics modelling approach, how a financial operation like the securitization of collectable credits performed by local PAs may constitute an efficient, effective and reliable tool in order to support proper and strategic decisions concerning the operation structuring as well as help reduce the collection delay, thus granting the organization with that sufficient liquidity which will be necessary to manage the actual services to the citizens and to program the provision of new ones on a larger time horizon.

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Date created
  • 2006 July 23-2006 July 27
Type
Processing Activity License

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System Dynamic Society Records

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Collecting area

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