Public investment and the fiscal common pool problem on municipal mergers in Japan

Haruaki Hirota and Hideo Yunoue

Economic Analysis and Policy, 2020, vol. 67, issue C, 124-135

Abstract: The purpose of this paper is to reveal the kinds of public investment that create a fiscal common pool problem through municipal mergers in Japan. In particular, we focus on whether municipal mergers increase road and public park construction immediately before the mergers because previous papers reveal that municipal mergers increase only local bonds. The empirical results show that subordinate merger partners rapidly increase their road and public park expenses just before mergers.

Keywords: Fiscal common pool problem; Municipal mergers; Public investment; Subordinate merger partner (search for similar items in EconPapers)
JEL-codes: H72 H73 H74 H77 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Public investment and the fiscal common pool problem on municipal mergers in Japan (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:67:y:2020:i:c:p:124-135

DOI: 10.1016/j.eap.2020.07.001

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