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Does Broader-Based Local Government affect Expenditure on Public Long-Term Care Insurance? The Case of Japan


  • Haruaki Hirota

    () (Graduate School of Economics, Osaka University)

  • Hideo Yunoue

    () (Osaka School of International Public Policy, Osaka University)


This paper considers the possible effects of broader-based local government, especially extended associations, in Japanese local public finance. We mainly analyze scale effects in public long-term care insurance expenditure, with our results indicating a U shaped expenditure structure. We also show that expenditures associated with extended associations decrease more rapidly than ordinary municipal expenditures. These findings suggest that expenditure of appropriate population size extended associations larger than single municipality.

Suggested Citation

  • Haruaki Hirota & Hideo Yunoue, 2008. "Does Broader-Based Local Government affect Expenditure on Public Long-Term Care Insurance? The Case of Japan," Discussion Papers in Economics and Business 08-34, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  • Handle: RePEc:osk:wpaper:0834

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    References listed on IDEAS

    1. Geys, Benny, 2006. "Looking across borders: A test of spatial policy interdependence using local government efficiency ratings," Journal of Urban Economics, Elsevier, vol. 60(3), pages 443-462, November.
    2. Federico Revelli, 2005. "On Spatial Public Finance Empirics," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(4), pages 475-492, August.
    3. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
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    Cited by:

    1. Nakanishi, Miharu & Nakashima, Taeko & Honda, Tatsuo, 2010. "Disparities in systems development for elder abuse prevention among municipalities in Japan: Implications for strategies to help municipalities develop community systems," Social Science & Medicine, Elsevier, vol. 71(2), pages 400-404, July.
    2. Hirota, Haruaki & Yunoue, Hideo, 2011. "平成の大合併と歳出削減‐類似団体別市町村財政指数表を用いた実証分析‐
      [Municipal mergers and local government expenditure. Evidence from Categorized Data of Japanese Municipalities]
      ," MPRA Paper 37484, University Library of Munich, Germany.

    More about this item


    local public finance; scale effects; broader-based local government; extended association; long-term care insurance;

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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