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

  • Weese, Eric

    (Yale University)

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    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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    Paper provided by Yale University, Department of Economics in its series Working Papers with number 113.

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    Date of creation: Apr 2013
    Date of revision:
    Handle: RePEc:ecl:yaleco:113
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    15. 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.
    16. Jeremy T. Fox, 2008. "Estimating Matching Games with Transfers," NBER Working Papers 14382, National Bureau of Economic Research, Inc.
    17. Akihiko Kawaura, 2010. "Self-Serving Mayors and Local Government Consolidations in Japan," Working Papers 201014, University of Hawaii at Manoa, Department of Economics.
    18. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
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    20. Greenberg, Joseph, 1979. "Stability when mobility is restricted by the existing coalition structure," Journal of Economic Theory, Elsevier, vol. 21(2), pages 213-221, October.
    21. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
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