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Government Transparency And Expenditure In The Rent-Seeking Industry: The Case Of Japan For 1998–2004

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  • EIJI YAMAMURA
  • HARUO KONDOH

Abstract

Since the end of the 1990s, local governments in Japan have enacted Information Disclosure Ordinances, which require the disclosure of official government information. This paper uses Japanese prefecture-level data for the period 1998?2004 to examine how this enactment affected the rate of government construction expenditure. The Dynamic Panel model is used to control for unobserved prefecture-specific effects and endogenous bias. The major finding is that disclosure of government information reduces the rate of government construction expenditure. This implies that information disclosure reduces losses from rent-seeking activity, which is consistent with public choice theory.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 31 (2013)
Issue (Month): 3 (07)
Pages: 635-647

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Handle: RePEc:bla:coecpo:v:31:y:2013:i:3:p:635-647

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References

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  1. Haruo KONDOH, 2008. "Political Economy of Public Capital Formation in Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, Policy Research Institute, Ministry of Finance Japan, vol. 4(1), pages 77-110, December.
  2. Haruo KONDOH, 2008. "Political Economy of Public Capital Formation in Japan," Macroeconomics Working Papers 22604, East Asian Bureau of Economic Research.
  3. Alt, James E. & Lassen, David Dreyer, 2006. "Fiscal transparency, political parties, and debt in OECD countries," European Economic Review, Elsevier, Elsevier, vol. 50(6), pages 1403-1439, August.
  4. James E. Alt & David Dreyer Lassen & David Skilling, 2001. "Fiscal Transparency, Gubernatorial Popularity, and the Scale of Government: Evidence from the States," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 01-16, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  5. Hiroshi Ohashi, 2009. "Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works," Review of Industrial Organization, Springer, Springer, vol. 34(3), pages 267-285, May.
  6. David Roodman, 2007. "A Note on the Theme of Too Many Instruments," Working Papers, Center for Global Development 125, Center for Global Development.
  7. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, Springer, vol. 147(3), pages 439-457, June.
  8. Heckelman, Jac C, 2000. " Consistent Estimates of the Impact of Special Interest Groups on Economic Growth," Public Choice, Springer, Springer, vol. 104(3-4), pages 319-27, September.
  9. Doi, Takero & Ihori, Toshihiro, 2002. "Fiscal Reconstruction and Local Interest Groups in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 492-511, December.
  10. James E. Alt & David Dreyer Lassen & Shanna Rose, 2006. "The Causes of Fiscal Transparency: Evidence from the American States," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 06-02, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  11. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 65, pages 135.
  12. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199245291, October.
  13. Mushfiq Swaleheen, 2011. "Economic growth with endogenous corruption: an empirical study," Public Choice, Springer, Springer, vol. 146(1), pages 23-41, January.
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Cited by:
  1. Yamamura, Eiji & Sabatini, Fabio, 2014. "Superstars in politics: the role of the media in the rise and success of Junichiro Koizumi," EconStor Preprints 98661, ZBW - German National Library of Economics.
  2. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.
  3. Yamamura, Eiji, 2013. "Governor’s term and information disclosure: Evidence from Japan," MPRA Paper 45848, University Library of Munich, Germany.
  4. Yamamura, Eiji & Sbatini, Fabio, 2014. "Superstars in politics: the role of the media in the koizumi regime," MPRA Paper 56093, University Library of Munich, Germany.

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