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Duisburg Working Papers on East Asian Economic Studies, Universität Duisburg-Essen >

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dc.contributor.authorYoshino, Naoyukien_US
dc.contributor.authorRobaschik, Franken_US
dc.date.accessioned2009-01-29T15:37:05Z-
dc.date.available2009-01-29T15:37:05Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/23137-
dc.description.abstractRapidly rising local government debt in Japan presents a nontrivial addition to the central government debt. The planned replacement of the approval system for local government bor- rowing by a `consultation system´ in FY 2006 does not remove the implicit central govern- ment guarantee for local debt and thus the moral hazard involved in the system. Given all the risks associated with high debt levels (crowding out, inflation, potential insustainability) and the bad selection of projects financed under the current system, we suggest to restrict local government borrowing to user based revenue bonds, where investors receive the future revenue of the project and have an incentive to carefully select and monitor the projects they finance. In a generation model we show that this not only improves the sustainability of local government debt, but that it is highly likely that the debt will be sustainable.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesDuisburger Arbeitspapiere zur Ostasienwirtschaft 72en_US
dc.subject.ddc330en_US
dc.subject.keywordGovernment debten_US
dc.subject.keywordsustainabilityen_US
dc.subject.keywordlocal government borrowingen_US
dc.subject.keywordlocal financeen_US
dc.subject.keywordJapanen_US
dc.subject.keywordgeneration modelen_US
dc.subject.keywordgovernment bondsen_US
dc.subject.keyworduser based revenue bondsen_US
dc.subject.stwKommunalverschuldungen_US
dc.subject.stwGemeindefinanzenen_US
dc.subject.stwHaushaltskonsolidierungen_US
dc.subject.stwProjektfinanzierungen_US
dc.subject.stwFinanzföderalismusen_US
dc.subject.stwJapanen_US
dc.titleLocal government finance in Japan : Can irresponsible borrowing be avoided?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn391200097en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:udefip:72-
Appears in Collections:Duisburg Working Papers on East Asian Economic Studies, Universität Duisburg-Essen

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