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The Influence of Government Size on Economic Growth and Life Satisfaction

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  • Eiji Yamamura

Abstract

This study 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 developing 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.

Suggested Citation

  • Eiji Yamamura, 2011. "The Influence of Government Size on Economic Growth and Life Satisfaction," Japanese Economy, Taylor & Francis Journals, vol. 38(4), pages 28-64.
    • Handle: RePEc:mes:jpneco:v:38:y:2011:i:4:p:28-64
    DOI: 10.2753/JES1097-203X380402
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    Cited by:

    1. Uchechi Shirley Anaduaka & Vivian Ikwuoma Nnetu & Stephen Ekene Aguegboh & David Iheke Okorie, 2016. "Relative Maxima of the Public Sector: A Comparative Study of Nigeria and Ghana," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 575-589, November.
    2. John F. Helliwell & Haifang Huang & Shun Wang, 2020. "Happiness and the Quality of Government," NBER Working Papers 26840, National Bureau of Economic Research, Inc.
    3. Sarracino, Francesco & O'Connor, Kelsey J. & Ono, Hiroshi, 2019. "Making economic growth and well-being compatible: evidence from Japan," MPRA Paper 93010, University Library of Munich, Germany.
    4. Livani, Talajeh & Graham, Carol, 2019. "Do social protection programs improve life satisfaction? Evidence from Iraq," World Development Perspectives, Elsevier, vol. 16(C).
    5. Salahodjaev, Raufhon, 2017. "Government size, intelligence and life satisfaction," MPRA Paper 76902, University Library of Munich, Germany.
    6. Ariel Herbert Fambeu & Georges Dieudonné Mbondo & Patricia Tchawa Yomi, 2022. "Bigger or better? The effect of public spending on happiness in Africa," African Development Review, African Development Bank, vol. 34(4), pages 487-499, December.
    7. Hassan Gholipour Fereidouni & Youhanna Najdi & Reza Ekhtiari Amiri, 2013. "Do governance factors matter for happiness in the MENA region?," International Journal of Social Economics, Emerald Group Publishing, vol. 40(12), pages 1028 - 1040, November.

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