Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73055
Authors: 
Nakazawa, Katsuyoshi
Miyashita, Tomohisa
Year of Publication: 
2013
Series/Report no.: 
Joint Discussion Paper Series in Economics 15-2013
Abstract: 
Municipal boundary reform (municipal amalgamation) has been done in many countries in recent years as the result of a push to enlarge the size and coverage of local government units, which in turn is driven mainly by the prospect of economies of scale. However, in a notable body of previous literature, the enlargement of local government has not led to reduction of public expenditures. Decision-making before amalgamation might affect to public expenditure after amalgamation. This study uses Japanese municipal-level data and argues for a relation between the choice of public administration distribution method and expenditure after amalgamation. The results show that a plan for distributed or decentralized facility method is more likely to be adopted in a larger administrative jurisdiction and in one with large differences in finances or political structures between amalgamated sub-regions. In turn, a plan for distributed facilities has the effect of pushing up administrative expenditure.
Subjects: 
local government amalgamation
consensus-building
multinomial logistic regression
local government expenditure
JEL: 
D78
H72
H73
H77
R51
Document Type: 
Working Paper

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