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Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations

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  • Eric Weese

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    (Economic Growth Center, Yale University)

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    Abstract

    Due to moral hazard problems, municipal mergers in Japan did not result in as many amalgamations as a central planner would have chosen. The inefficiency of the decentralized mergers is calculated using structural parameter estimates based on observed mergers and actual national government policies. Estimation requires neither an equilibrium selection assumption nor the enumeration of all possible mergers.

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    File URL: http://www.econ.yale.edu/growth_pdf/cdp1022.pdf
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    Bibliographic Info

    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 1022.

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    Length: 58 pages
    Date of creation: Apr 2013
    Date of revision:
    Handle: RePEc:egc:wpaper:1022

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    Keywords: boundaries; mergers; moment inequalities; municipalities;

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    References

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    1. Gordon, Nora & Knight, Brian, 2009. "A spatial merger estimator with an application to school district consolidation," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 752-765, June.
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    Cited by:
    1. Janne Tukiainen & Tuukka Saarimaa, 2013. "Common Pool Problems in Voluntary Municipal Mergers," Working Papers 53, Government Institute for Economic Research Finland (VATT).

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