[Municipal mergers and local government expenditure. Evidence from Categorized Data of Japanese Municipalities]
The number of municipalities in Japan has decreased from 3,232 in 1999 to 1,820 in 2006 because of municipal mergers, called Heisei-no-Daigappei. This paper estimates the effects of municipal mergers in Japan’s local public expenditure. In order to evaluate the expenditure of municipal mergers, our new approach is to apply unique index called financial index classified by similar types. We mainly results the scale effect using panel data on Japanese municipalities and found that municipalities achieved reductions in their total expenditures with mergers. In addition, the expenditure structure is also found to be an inverse U shaped.
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- Haruaki Hirota & Hideo Yunoue, 2008. "Does Broader-Based Local Government affect Expenditure on Public Long-Term Care Insurance? The Case of Japan," Economics Bulletin, AccessEcon, vol. 8(11), pages 1-20.
- 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).
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