Municipal Consolidation and Local Government Behavior: Evidence from Japanese Voting Data on Merger Referenda
AbstractThe empirical literature investigating the role of key features of local governments regarding decisions on consolidation tends to use a dummy that takes 1 if adjacent local governments decide to merge. Under the estimation method, it is difficult to identify which governments have no incentive to merge. The current study presents an empirical test of decision on consolidation using voting data from Japanese local referenda that distinctively identify the preferences of specific individual municipalities. I find evidence that municipalities that could enjoy large economies of scale from a merger prefer consolidation, and large and small municipalities are likely to merge.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number 588.
Length: 32,  p.
Date of creation: May 2013
Date of revision:
Boundary reform; economics of scale; local referenda; median voter model; municipal consolidation;
Find related papers by JEL classification:
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-CDM-2013-05-24 (Collective Decision-Making)
- NEP-PBE-2013-05-24 (Public Economics)
- NEP-POL-2013-05-24 (Positive Political Economics)
- NEP-URE-2013-05-24 (Urban & Real Estate Economics)
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