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Political Mergers as Coalition Formation: Evidence from Japanese Municipal Amalgamations

Eric Weese ()

No 5, CCES Discussion Paper Series from Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University

Abstract: Political coalition formation games can describe the formation and dissolution of nations, as well as the creation of coalition governments, the establishment of political parties, and other similar phenomena. These games have been studied from a theoretical perspective, but the models have not been used extensively in empirical work. This paper presents a method of estimating political coalition formation models with many-player coalitions, and then applies this method to the recent heisei municipal amalgamations in Japan to estimate structural coeffients that describe the behaviour of municipalities. The method enables counterfactual analysis, which in the Japanese case shows that the national government could increase welfare via a counter-intuitive policy involving transfers to richer municipalities conditional on their participation in a merger.

Keywords: Coalition Formation; Municipal Mergers; Japan (search for similar items in EconPapers)
JEL-codes: C71 H77 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2008-12
New Economics Papers: this item is included in nep-cdm, nep-gth and nep-pol
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Citations: View citations in EconPapers (2) Track citations by RSS feed

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http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16353/5/070ccesDP_005.pdf

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Working Paper: Political Mergers as Coalition Formation: Evidence from Japanese Municipal Amalgamations (2008) Downloads
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