Does local council size affect land development expenditure? Quasi-experimental evidence from Japanese municipal data

Haruaki Hirota and Hideo Yunoue

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to evaluate a fiscal common-pool problem in a Japanese local government. Especially, we focus on the relationship between council size and land development expenditure of local government using a dataset of 13,989 municipalities in Japan from FY2001 to FY2006. We deal with an identification of causal effects by applying regression discontinuity design’s framework to address problem of endogeneity bias. Our results show that land development expenditure of small municipalities induce the fiscal common-pool problem over public projects.

Keywords: fiscal common-pool problem; council size; government expenditure; regression discontinuity design (search for similar items in EconPapers)
JEL-codes: H76 H77 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-ppm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43723

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