Hirota, Haruaki and Yunoue, Hideo (2019): Public investment and the fiscal common pool problem on municipal mergers in Japan.
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Abstract
The purpose of this paper is to reveal which kinds of public investment cause municipal mergers to create a fiscal common pool problem in Japan. In particular, we focus on whether municipal mergers increase road and public park construction just before the mergers or not because previous papers reveal only that municipal mergers increase local bonds. The empirical results reveal that the subordinate merger partners rapidly increase their road and public park expenses just before mergers.
Item Type: | MPRA Paper |
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Original Title: | Public investment and the fiscal common pool problem on municipal mergers in Japan |
English Title: | Public investment and the fiscal common pool problem on municipal mergers in Japan |
Language: | English |
Keywords: | fiscal common pool problem, municipal mergers, public investment, subordinate merger partner |
Subjects: | H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H72 - State and Local Budget and Expenditures H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H76 - State and Local Government: Other Expenditure Categories |
Item ID: | 95571 |
Depositing User: | Haruaki Hirota |
Date Deposited: | 22 Aug 2019 15:47 |
Last Modified: | 27 Sep 2019 02:27 |
References: | Bless, S., Baskaran, T., 2016. "Do municipal mergers reduce costs? Evidence from a German federal state." Regional Science and Urban Economics, 59, 54-74. Hansen, S.W., 2014. "Common pool size and project size: An empirical test on expenditures using Danish municipal mergers." Public Choice, 159 (1-2), 3-21. Hinnerich, B.T., 2009. "Do merging local governments free ride on their counterparts when facing boundary reform?" Journal of Public Economics, 93, 721-728. Hirota, H., Yunoue, H., 2017. "Evaluation of the fiscal effects on municipal mergers: Quasi-experimental evidence from Japanese municipal data. " Regional Science and Urban Economics, 66, pp. 132-149. Jordahl, H., Liang, C-Y., 2010. "Merged municipalities, higher debt: On free-riding and the common pool problem in politics." Public Choice, 143, 157-172. Nakazawa, K., 2016. "Amalgamation, free-ride behavior, and regulation." International Tax and Public Finance, 23(5), 812-833. Reingewerts, Y., 2012. "Do municipal amalgamations work? Evidence from municipalities in Israel." Journal of Urban Economics, 72, 240-251. Saarimaa, T., Tukiainen, J., 2015. "Common pool problems in voluntary municipal mergers." European Journal of Political Economy, 38, 140-152. Weingast, B.R., Shepsle, K.A., Johnsen, C., 1981. The political economy of benefits and costs: A neoclassical approach to distributive politics. Journal of Political Economics, 89 (4), 642-664. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/95571 |
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