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

Masayoshi Hayashi

FinanzArchiv: Public Finance Analysis, 2019, vol. 75, issue 2, 152-186

Abstract: This study examines the existence of a loosening effect of central funding on a local social policy 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.

Keywords: welfare caseloads; social assistance; fiscal transfers; Japan (search for similar items in EconPapers)
JEL-codes: H73 H75 H77 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1628/fa-2019-0001

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