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Local Public Investment and Regional Business Cycle Fluctuations in Japan

Author

Listed:
  • Tomomi Miyazaki

    (Graduate School of Economics, Kobe University)

  • Haruo Kondoh

    (Department of Economics, Seinan Gakuin University)

Abstract

This paper examines the relationship between regional business cycle fluctuations and local public investment in Japan. The empirical results show the possibility that a part of the local public investment decided by political factors may amplify regional business cycle fluctuations. @ @

Suggested Citation

  • Tomomi Miyazaki & Haruo Kondoh, 2016. "Local Public Investment and Regional Business Cycle Fluctuations in Japan," Discussion Papers 1624, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1624
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2016/1624.pdf
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    References listed on IDEAS

    as
    1. Sam Hak Kan Tang & Charles Ka Yui Leung, 2016. "The Deep Historical Roots of Macroeconomic Volatility," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 568-589, December.
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    6. Miyazaki, Tomomi, 2009. "Public investment and business cycles: The case of Japan," Journal of Asian Economics, Elsevier, vol. 20(4), pages 419-426, September.
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    13. Tomomi Miyazaki, 2017. "Public investment and regional business cycle fluctuations in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 24(11), pages 795-799, June.
    14. Funashima, Yoshito, 2014. "Macroeconomic policy coordination between Japanese central and local governments," MPRA Paper 59821, University Library of Munich, Germany.
    15. Tomomi Miyazaki, 2010. "Local Public Sector Investment and Stabilization Policy : Evidence from Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(1), pages 153-166, February.
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    19. Haruo KONDOH, 2008. "Political Economy of Public Capital Formation in Japan," Macroeconomics Working Papers 22604, East Asian Bureau of Economic Research.
    20. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
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    Cited by:

    1. Funashima, Yoshito & Ohtsuka, Yoshihiro, 2019. "Spatial crowding-out and crowding-in effects of government spending on the private sector in Japan," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 35-48.
    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

    Local public investment; Volatility of the regional economy; Regional business cycles;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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