THE DETERMINANTS OF JAPANESE LOCAL‐BENEFIT SEEKING

Steven A. Meyer and Shigeto Naka

Contemporary Economic Policy, 1999, vol. 17, issue 1, 87-96

Abstract: This paper examines the determinants of the allocation of Japan's central government spending across its prefectures. Using the framework developed by Atlas et al. (American Economic Review, 85:3, June 1995, 624–629), the paper examines whether over‐represented Japanese prefectures receive larger real per capita transfers than under‐represented prefectures. A broad concern of the paper is whether institutions matter. Per capita representation of prefectures, party affiliation, and intra‐party characteristics are found to be determinants of Japan's central government transfers. The results suggest that institutions do matter. (JEL H3, H5, H6, H7)

Date: 1999
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