Municipality amalgamation and free-ride behavior: Eligibility assessments for long-term care insurance in Japan
Amalgamation offers municipalities an incentive to free ride when they can subrogate the load to a new municipality after amalgamation. Previous literature has clarified opportunistic behavior in local public bond issues. However, if the municipality does not have a leeway in policy decision making, it cannot adopt free-ride behavior. Although the Japanese long-term care insurance system has been so designed that the municipality does not have discretion in its working, doubts have been raised on this score. This study empirically considers this issue by examining municipality behavior before amalgamation. Difference-in-difference regression confirms a free-ride effect in the eligibility assessments for long-term care by the Japanese municipality. These results mean that the Japanese long-term care insurance system is not managed in accordance with the institutional design.
|Date of creation:||2013|
|Date of revision:|
|Publication status:||Forthcoming in|
|Contact details of provider:|| Postal: Universitätsstraße 25, 35037 Marburg|
Web page: http://www.uni-marburg.de/fb02/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reza Baqir, 2002. "Districting and Government Overspending," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1318-1354, December.
- Jordahl, Henrik & Liang, Che-Yuan, 2006.
"Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics,"
Ratio Working Papers
107, The Ratio Institute.
- Henrik Jordahl & Che-Yuan Liang, 2010. "Merged municipalities, higher debt: on free-riding and the common pool problem in politics," Public Choice, Springer, vol. 143(1), pages 157-172, April.
- Jordahl, Henrik & Liang, Che-Yuan, 2006. "Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics," Working Paper Series 2006:27, Uppsala University, Department of Economics.
- Jordahl, Henrik & Liang, Che-Yuan, 2006. "Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics," Working Paper Series 679, Research Institute of Industrial Economics.
- Tyrefors Hinnerich, Björn, 2009. "Do merging local governments free ride on their counterparts when facing boundary reform?," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 721-728, June.
- Katsuyoshi Nakazawa, 2013.
"Amalgamation, free-ride behavior, and regulation,"
MAGKS Papers on Economics
201339, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67, pages 571.
- Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August.
- Bradbury, John Charles & Crain, W. Mark, 2001. "Legislative organization and government spending: cross-country evidence," Journal of Public Economics, Elsevier, vol. 82(3), pages 309-325, December.
- Olivia S. Mitchell & John Piggott & Satoshi Shimizutani, 2004.
"Aged-Care Support in Japan: Perspectives and Challenges,"
NBER Working Papers
10882, National Bureau of Economic Research, Inc.
- Mitchell Olivia S. & PIGGOTT John & SHIMIZUTANI Satoshi, 2004. "Aged-Care Support in Japan: Perspectives and Challenges," ESRI Discussion paper series 118, Economic and Social Research Institute (ESRI).
- Gilligan, Thomas W & Matsusaka, John G, 1995. "Deviations from Constituent Interests: The Role of Legislative Structure and Political Parties in the States," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 383-401, July.
- Bradbury, John Charles & Stephenson, E Frank, 2003. "Local Government Structure and Public Expenditures," Public Choice, Springer, vol. 115(1-2), pages 185-98, April.
- Gilligan, Thomas W. & Matsusaka, John G., 2001. "Fiscal Policy, Legislature Size, and Political Parties: Evidence from State and Local Governments in the First Half of the 20th Century," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 57-82, March.
When requesting a correction, please mention this item's handle: RePEc:mar:magkse:201340. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernd Hayo)
If references are entirely missing, you can add them using this form.