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The influence of government size on economic growth and life satisfaction. A case study from Japan

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  • Yamamura, Eiji

Abstract

This paper uses Japanese prefecture-level data for the years 1979 and 1996 to examine how the relationship between government size and life satisfaction changes. The major findings are: (1) Government size has a detrimental effect on life satisfaction when government size impedes economic growth in the economic developing stage. However, this effect clearly decreases when government size is not associated with economic growth in the developed stage. (2) Particularized trust is positively associated with life satisfaction of females but not with that of males. Such a tendency becomes more remarkable in the developed stage. These results are unchanged when the endogeneity bias caused by local government size and proxies of trust are controlled for.

Suggested Citation

  • Yamamura, Eiji, 2009. "The influence of government size on economic growth and life satisfaction. A case study from Japan," MPRA Paper 17879, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17879
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    Cited by:

    1. Kamal KASMAOUI & Othmane BOURHABA, 2017. "Happiness and Public Expenditure: Evidence from a Panel Analysis," Working Papers 2016-2017_8, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Apr 2017.
    2. Seoyong Kim & Donggeun Kim, 2012. "Does Government Make People Happy?: Exploring New Research Directions for Government’s Roles in Happiness," Journal of Happiness Studies, Springer, vol. 13(5), pages 875-899, October.

    More about this item

    Keywords

    Life satisfaction; Government size; Trust; Growth;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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