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

  • Eric Weese

    ()

    (Economic Growth Center, 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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    File URL: http://www.econ.yale.edu/growth_pdf/cdp1022.pdf
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    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 1022.

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    Length: 58 pages
    Date of creation: Apr 2013
    Date of revision:
    Handle: RePEc:egc:wpaper:1022
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    1. Elie Tamer & Federico Ciliberto, 2004. "Market Structure and Multiple Equilibria in Airline Markets," 2004 Meeting Papers 52, Society for Economic Dynamics.
    2. Effrosyni Diamantoudi & Licun Xue, . "Coalitions, Agreements and Efficiency," Economics Working Papers 2002-9, School of Economics and Management, University of Aarhus.
    3. EHLERS, Lars, 2005. "Von Neumann-Morgenstern Stable Sets in Matching Problems," Cahiers de recherche 12-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    4. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January.
    5. Miceli Thomas J., 1993. "The Decision to Regionalize in the Provision of Education: An Application of the Tiebout Model," Journal of Urban Economics, Elsevier, vol. 33(3), pages 344-360, May.
    6. Akihiko Kawaura, 2010. "Self-Serving Mayors and Local Government Consolidations in Japan," Working Papers 201014, University of Hawaii at Manoa, Department of Economics.
    7. Barbera, Salvador & Gerber, Anke, 2007. "A note on the impossibility of a satisfactory concept of stability for coalition formation games," Economics Letters, Elsevier, vol. 95(1), pages 85-90, April.
    8. repec:hrv:faseco:4553034 is not listed on IDEAS
    9. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
    10. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1027-1056.
    11. Demange, G., 1991. "Intermediate Preferences and Stable Coalition Structures," DELTA Working Papers 91-16, DELTA (Ecole normale supérieure).
    12. 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.
    13. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    14. Alvin Roth, 2008. "Deferred acceptance algorithms: history, theory, practice, and open questions," International Journal of Game Theory, Springer, vol. 36(3), pages 537-569, March.
    15. Jeremy T. Fox, 2008. "Estimating Matching Games with Transfers," NBER Working Papers 14382, National Bureau of Economic Research, Inc.
    16. A. Pakes, 2010. "Alternative Models for Moment Inequalities," Econometrica, Econometric Society, vol. 78(6), pages 1783-1822, November.
    17. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer, vol. 18(1), pages 135-153.
    18. 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.
    19. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    20. Greenberg, Joseph & Weber, Shlomo, 1986. "Strong tiebout equilibrium under restricted preferences domain," Journal of Economic Theory, Elsevier, vol. 38(1), pages 101-117, February.
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