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Do Central Grants Affect Welfare Caseloads? Evidence from Public Assistance in Japan

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  • Masayoshi Hayashi

    (Faculty of Economics, The University of Tokyo)

Abstract

This study examines the existence of a “loosening effect†on a local social policy of central funding by exploiting a specific mechanism in the Japanese system of central grants and two institutional changes in categorical grants for local social assistance programs. Despite performing various types of estimations, we fail to substantiate the existence of the loosening effect. This result indicates the dominance of central control over local discretion in public assistance programs, and suggests that important factors are administrative rather than fiscal.

Suggested Citation

  • Masayoshi Hayashi, 2017. "Do Central Grants Affect Welfare Caseloads? Evidence from Public Assistance in Japan," CIRJE F-Series CIRJE-F-1064, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2017cf1064
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2017/2017cf1064.pdf
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