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

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  • Eric Weese

    () (Economic Growth Center, Yale University)

Abstract

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.

Suggested Citation

  • Eric Weese, 2013. "Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations," Working Papers 1022, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:1022
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp1022.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kuninori Nakagawa, 2014. "Municipal sizes and municipal restructuring in Japan," ERSA conference papers ersa14p416, European Regional Science Association.
    2. Samuel Bazzi & Matthew Gudgeon, 2015. "Local Government Proliferation, Diversity, and Conflict," HiCN Working Papers 205, Households in Conflict Network.
    3. Saarimaa, Tuukka & Tukiainen, Janne, 2015. "Common pool problems in voluntary municipal mergers," European Journal of Political Economy, Elsevier, vol. 38(C), pages 140-152.
    4. Aleberto Alesina & Guido Tabellini & Francesco Trebbi, 2017. "Is Europe an Optimal Political Area?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 169-234.
    5. Eric Weese & Masayoshi Hayashi & Masashi Nishikawa, 2015. "Inefficiency and Self-Determination: Simulation-based Evidence from Meiji Japan," Discussion Paper Series DP2015-35, Research Institute for Economics & Business Administration, Kobe University.
    6. Larry G. Epstein & Hiroaki Kaido & Kyoungwon Seo, 2016. "Robust Confidence Regions for Incomplete Models," Econometrica, Econometric Society, vol. 84, pages 1799-1838, September.
    7. Christian Bergholz & Ivo Bischoff, 2016. "Citizens‘ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse," MAGKS Papers on Economics 201643, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Lothar Grall, 2016. "Geography, Parental Investment, and Comparative Economic Development," MAGKS Papers on Economics 201646, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    9. repec:eee:regeco:v:66:y:2017:i:c:p:132-149 is not listed on IDEAS
    10. Gabrielle Demange, 2017. "The stability of group formation," Revue d'économie politique, Dalloz, vol. 127(4), pages 495-516.
    11. repec:kob:wpaper:1629 is not listed on IDEAS
    12. Pei Li & Yi Lu & Tuan-Heww Sng, 2017. "Artificial Administrative Boundaries: Evidence from China," CEH Discussion Papers 09, Centre for Economic History, Research School of Economics, Australian National University.
    13. Blesse, Sebastian & Baskaran, Thushyanthan, 2016. "Do municipal mergers reduce costs? Evidence from a German federal state," Regional Science and Urban Economics, Elsevier, vol. 59(C), pages 54-74.
    14. Lothar Grall, 2016. "Natural Selection, Technological Progress, and the Origin of Human Longevity," MAGKS Papers on Economics 201645, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Thilo Klein, 2015. "Does Anti-Diversification Pay? A One-Sided Matching Model of Microcredit," Cambridge Working Papers in Economics 1521, Faculty of Economics, University of Cambridge.
    16. Hirota, Haruaki & Yunoue, Hideo, 2017. "Evaluation of the fiscal effect on municipal mergers: Quasi-experimental evidence from Japanese municipal data," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 132-149.
    17. Saarimaa, Tuukka & Tukiainen, Janne, 2016. "Local representation and strategic voting: Evidence from electoral boundary reforms," European Journal of Political Economy, Elsevier, vol. 41(C), pages 31-45.
    18. Nikhil Agarwal, 2015. "An Empirical Model of the Medical Match," American Economic Review, American Economic Association, vol. 105(7), pages 1939-1978, July.
    19. Eric Weese, 2016. "European Political Boundaries as the Outcome of a Self-Organizing Process," Discussion Papers 1629, Graduate School of Economics, Kobe University.
    20. Kuninori Nakagawa, 2016. "Municipal sizes and municipal restructuring in Japan," Letters in Spatial and Resource Sciences, Springer, vol. 9(1), pages 27-41, March.
    21. Lothar Grall, 2016. "Ice Age Climate, Somatic Capital, and the Timing of the Neolithic Transition," MAGKS Papers on Economics 201644, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    boundaries; mergers; moment inequalities; municipalities;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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