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

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Author Info
Yamamura, Eiji

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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 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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17879.

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Date of creation: 14 Oct 2009
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Handle: RePEc:pra:mprapa:17879

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

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Find related papers by JEL classification:
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare

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