Public Assistance and Local Government in Japan
- 한국재정학회(구 한국재정·공공경제학회)
- 한국재정학회 학술대회 논문집
- 2008년도 추계학술대회 논문집
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2008.101 - 24 (24 pages)
- 8
Local governments in Japan are partially funded by the central government to implement public assistance for the needy in theirjurisdictions. This paper exploits the institutional interplay of the Japanese intergovernmental transfers to identify the effects of centralfunding on the locally implemented social programs. The institutional features also enable us to frame the effect in terms of the average treatment effect, possibly taking advantage of the sharp regression discontinuity design. Our results indicate that local governments on average respond to an increase in the central funding by protecting more of ther residents. This does not contradict to the traditional view of the Japanese government that more of central funding increases unnecessaryexpenditures for public assistance by local governments. However, such an increase does not have to be unnecessary. Given a low take-up rate in the country, our results rather indicate that central funding can be an effective policy instrument to protect more of the needy.
Abstract
1. Introduction
2. Public assistance and local government in Japan
3. Empirical models
4. Estimation
5. Concluding remarks
References
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