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Does Broader-Based Local Government affect Expenditure on Public Long-Term Care Insurance? The Case of Japan

Haruaki Hirota and Hideo Yunoue ()
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Hideo Yunoue: Osaka School of International Public Policy, Osaka University

No 08-34, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper considers the possible effects of broader-based local government, especially extended associations, in Japanese local public finance. We mainly analyze scale effects in public long-term care insurance expenditure, with our results indicating a U shaped expenditure structure. We also show that expenditures associated with extended associations decrease more rapidly than ordinary municipal expenditures. These findings suggest that expenditure of appropriate population size extended associations larger than single municipality.

Keywords: local public finance; scale effects; broader-based local government; extended association; long-term care insurance (search for similar items in EconPapers)
JEL-codes: H73 H75 H83 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2008-09
New Economics Papers: this item is included in nep-ias, nep-pbe and nep-ure
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