yamamura, eiji (2008): The influence of government size on economic growth and life satisfaction. A case study from Japan.
Download (334kB) | Preview
This paper uses Japanese prefecture-level data for the years 1979 and 1996 to examine how the relationship between government size and life satisfaction changes. The major findings are: (1) Government size has a detrimental effect on life satisfaction when government size impedes economic growth in the economic development stage. However, this effect clearly decreases when government size is not associated with economic growth in the developed stage. (2) Particularized trust is positively associated with life satisfaction of females but not with that of males. Such a tendency becomes more remarkable in the developed stage. These results are unchanged when the endogeneity bias caused by local government size and proxies of trust are controlled for.
|Item Type:||MPRA Paper|
|Original Title:||The influence of government size on economic growth and life satisfaction. A case study from Japan.|
|Keywords:||Life satisfaction; Government size; Trust; Growth|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General
H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being
|Depositing User:||eiji yamamura|
|Date Deposited:||30. Sep 2008 02:07|
|Last Modified:||02. Mar 2013 17:45|
Acemoglu, D., Simon, J., Robinson, J.A., & Yared, P. (2008). Income and democracy, American Economic Review, 98, 808-842.
Asahi Shimbun. (2004). Minryoku: TODOFUKEN-BETSU MINRYOKU SOKUTEI SHIRYOSHU (CD-ROM edition), Asahi-Newspaper, Tokyo.
Asanuma, B. (1989). Manufacturer-supplier relationships in Japan and the concept of relation specific skill. Journal of Japanese & International Economics, 3, 1-30.
Bairam, E. (1990). Government size and economic growth: The African experience, 1960-1985. Applied Economics, 22, 1427-1435.
Barro, R.J. (1997). Determinants of economic growth: a cross-country empirical study. Cambridge: MIT Press.
Becker, G. (1964). Human Capital, Columbia University Press, New York.
Bjørnskov, C. (2003). The happy few. Cross country evidence on social capital and life satisfaction. Kyklos, 56, 3-16.
Bjørnskov, C. (2006). Determinants of generalized trust: A cross-country comparison. Public Choice, 130, 1-21.
Bjørnskov, C., Dreher, A., & Fischer, J.A.V. (2007).The bigger the better? Evidence of the effect of government size on life satisfaction around the world. Public Choice, 130, 267-292.
Bjørnskov, C., Dreher, A., & Fischer, J.A.V. (2008a). Cross-country determinants of life satisfaction: exploring different determinants across groups in society. Social Choice and Welfare, 30, 119-173.
Bjørnskov, C., Dreher, A., & Fischer, J.A.V. (2008b). On decentralization and life satisfaction. Economics Letters, 99 , 147-151.
Bjørnskov, C., Dreher, A., & Fischer, J.A.V. (2008c). Formal institutions and subjective well-being: Revisiting the cross-country evidence. KOF working papers, 192.
Bjørnskov, C., Gupta, N.G., & Pedersen, P. (2008d). Analyzing Trends in Subjective Well-Being in 15 European Countries, 1973-2002, Journal of Happiness Studies, 9, 317-330.
Chen, S.T., & Lee,C.C. (2005). Government size and economic growth in Taiwan: A threshold regression approach. Journal of Policy Modeling, 27, 1051-1066.
Dar, A.A., & Amirkhalkhali, S. (2002). Government size, factor accumulation, and economic growth: Evidence from OECD countries. Journal of Policy Modeling, 24, 679-692.
DiTella, R., MacCulloch, R., & Oswald, A.J. (2003). The macroeconomics of happiness. Review of Economics & Statistics, 85, 809-825.
Easterlin, R. (1995). Will raising the incomes of all increase the happiness of all? Journal of Economic Behavior & Organization, 27, 35-47.
Easterly, W., & Rebelo, S. (1993). Fiscal policy and economic growth: An empirical investigation. Journal of Monetary Economics, 32, 417-438.
Feld, L.P., & Svioz, M.R. (1997). Direct democracy matters for economic performance: an empirical investigation. Kyklos, 50, 507-538.
Fölster, S., & Herekson, M. (2001). Growth effects of government expenditure and taxation in rich countries. European Economic Review, 45, 1501-1520.
Frey, B. & Stutzer, A., (2000). Happiness, economy and institutions, Economic Journal, 110, 918–38.
Frey, B. & Stutzer, A., (2002). What can economists learn from happiness research? Journal of Economic Literature, 40, 402-435.
Fukao, K., & Yue, X. (2000). Regional Factor Inputs and Convergence in Japan: How Much Can We Apply Closed Economy Neoclassical Growth Models? (in Japanese), Economic Review, 51, 136-151.
Greene, W.H. (1997). Econometric Analysis (3 eds), Prentice-Hall, London.
Grossman, P.J. (1988). Government and economic growth: A non-linear relationship. Public Choice, 56, 193-200.
Guseh, J.S. (1997). Government size and economic growth in developing countries: a Political-economy framework. Journal of Macroeconomics, 19, 175-192.
Hayami, Y. (2001). Development economics: From poverty to the wealth of nations. (second edition). New York: Oxford University Press.
Helliwell, J.F. (2003). How’s life? Combining individual and national variables to explain subjective well-being. Economic Modeling, 20, 331-360.
Helliwell, J.F. (2006). Well-being, social capital and public sector: what’s new? Economic Journal, 116, C34-C45.
Index Corporation. (2006). Chiiki toukei 2006 (CD-ROM edition), Index corporation, Tokyo. Japan Broadcasting Corporation ( Nihon hoso kyokai ), 1979; 1996. Zenkoku kenmin ishiki chosa.
Kawachi, I., Kennedy, B .P., Lochner, K., & Prothrow-Stith, D. (1997). Social capital, income inequality, and mortality. American Journal of Public Health, 87,1491-1498.
Landau, D. (1985). Government expenditure and economic growth in the developed countries: 1952-76. Public Choice, 47, 459-477.
Layard, R. (2006). Happiness and public policy: a challenge to the profession. Economic Journal, 116, C24-C33.
Luechinger, S., Meier, S., & Stutzer, A. (2006). Bureaucratic rents and life satisfaction. Institute for Empirical Research in Economics, University of Zurich Working Paper Series No. 269.
Mendoza, E.G., Milesi-Ferretti, G.M., & Asea, P. (1997). On the ineffectiveness of tax policy in altering long-run growth: Harberger’s superneutrality conjecture. Journal of Public Economics, 66, 99-126.
Olson, M. (1965). The logic of collective action : public goods and the theory of groups. Harvard University Press, Cambridge.
Peden, E.G., & Bradley, M.D. (1989). Government size, productivity, and economic growth: The postwar experience. Public Choice, 61, 229-245.
Ram, R. (1986). Government size and economic growth: A new framework and some evidence from cross-section and time-series data. American Economic Review, 76, 191-203.
Scoppa, V. & Ponzo, M. (2008). An empirical study of happiness in Italy. B.E. Journal of Economic Analysis & Policy, 8(1), 15.
Statistics Bureau of the Ministry of Internal Affairs and Communications. (various year). Zenkoku shohi jittai chosa. Tokyo: Statistics Bureau of the Ministry of Internal Affairs and Communications.
Stutzer, A., (2004). The role of income aspirations in individual happiness, Journal of Economic Behavior & Organization, 54, 89-109.
Uslaner, E. M. (2002). The Moral Foundations of Trust, Cambridge University Press, New York.
Yamamura, E. (2008a). Determinants of trust in a racially homogeneous society. Economics Bulletin, 26(1), 1-9.
Yamamura, E. (2008b). Comparison of neighborhood trust between generations in a racially homogeneous society: A case study from Japan. MPRA Paper 10218, University Library of Munich, Germany.
Yamamura, E., (2008c). The effects of inequality, fragmentation, and social capital on collective action in a homogeneous society: analyzing responses to the 2005 Japan census. Forthcoming in Journal of Socio Economics.
Yamamura, E., Sonobe,T. & Keijiro Otsuka, (2005). Time path in innovation, imitation, and growth: the case of the motorcycle industry in postwar Japan. Journal of Evolutionary Economics, 15(2), 169-186.
Yamamura, E. & Shin,I. (2007). Dynamics of agglomeration economies and regional industrial structure: The case of the assembly industry of the Greater Tokyo Region 1960-2000. Structural Change and Economic Dynamics,18(4), 483-499.