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Counter-cyclical policy and political manipulation: An empirical analysis of Japanese government expenditures

Author

Listed:
  • Yoshito Funashima

    (Aoyama Gakuin University)

Abstract

Distinguishing accurately pure macroeconomic stabilization policies from election-motivated manipulations might be a difficult task within the framework of regression analysis. This paper attempts to demonstrate that the simple introduction of frequency-domain perspective provides a direct means of identifying portions of underlying components of Japanese public expenditures. We find that public investment behaves counter-cyclically over the business cycle, and not only public investment but also public consumption is manipulated for the House of Councillors elections.

Suggested Citation

  • Yoshito Funashima, 2012. "Counter-cyclical policy and political manipulation: An empirical analysis of Japanese government expenditures," Economics Bulletin, AccessEcon, vol. 32(3), pages 1902-1913.
    • Handle: RePEc:ebl:ecbull:eb-12-00501
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P184.pdf
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    References listed on IDEAS

    as
    1. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    2. Christina Schneider, 2010. "Fighting with one hand tied behind the back: political budget cycles in the West German states," Public Choice, Springer, vol. 142(1), pages 125-150, January.
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    Cited by:

    1. Yoshito Funashima, 2012. "The effects of public investment smoothing as a stimulus measure on construction industry in Japan," Economics Bulletin, AccessEcon, vol. 32(3), pages 1992-2006.
    2. Funashima, Yoshito & Horiba, Isao & Miyahara, Shoichi, 2015. "Local Government Investments and Ineffectiveness of Fiscal Stimulus during Japan's Lost Decades," MPRA Paper 61333, University Library of Munich, Germany.

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    More about this item

    Keywords

    public expenditures; frequency-domain perspective;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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