Research on Risks Assessment and Warning System of Local Government Debts

With the development of social economy, risks assessment and warning system of local government debts have imperiled economy security as well as society steadiness. In order to solve the problem, a risks assessment and warning system of local government debts is analyzed to produce some suggests. This paper is an overview and discussion some important assessment methods for local government debts risks. Firstly, a basic theoretical model of risks assessment is proposed based on literature review. Secondly, an assessment and warning system of local government debts is presented. Then, this paper puts forward the Fuzzy Analytic Hierarchy Process (FAHP) method to determine the degree of importance of each index of risks assessment. Finally, the validity and practicability of risks assessment and warning system is verified after the model had been applied to the practice of a local government debt.