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The influence of government size on economic growth and life satisfaction. A case study from Japan

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  • yamamura, eiji

Abstract

This paper 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 development 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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10835.

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Date of creation: 17 Sep 2008
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Handle: RePEc:pra:mprapa:10835

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Keywords: Life satisfaction; Government size; Trust; Growth;

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Cited by:
  1. Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.

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