Decisions on regional allocation of public investment: the case of Japan

Kamada, Kimiyoshi; Okuno, Nobuhiro; Futagami, Ritsuko

doi:10.1080/135048598354438

Cited by 6 publications

(5 citation statements)

References 7 publications

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“…Although Kemmeling and Stephan's (2002) is the most recent study of how political factors affect public investment, Crain and Oakley (1995) and Kamada et al (1998) have also investigated several factors affecting public investment. By using data from US states from 1978 to 1988, Crain and Oakley (1995) investigate how political institutions and processes affect public capital and public investment.…”

Section: Political and Other Factorsmentioning

confidence: 99%

“…They find that institutions such as term limits, citizen initiative, and budgeting procedures were significant determinants of state public capital stock and public investment. Kamada et al (1998) investigate the factors underlying public decisions on regional allocation of public investment. They take for observation and analyze ten regions of Japan for the time periods from 1955 to 1986, using the following as explanatory variables: population growth rate, growth rate of per capita income, and regional income inequality index.…”

Section: Political and Other Factorsmentioning

confidence: 99%

“…Kemmerling and Stephan (2002) consider lobbying factors as well as political factors. Kamada et al (1998) try to investigate how socio-economic conditions such as income growth rate per capita and population growth rate affect the regional allocation of public capital investment. We hope that our approach, with its three characteristics, answers some important questions.…”

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confidence: 99%

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Productivity effects and determinants of public infrastructure investment

Mizutani

Tanaka

2008

Ann Reg Sci

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Section: Political and Other Factorsmentioning

confidence: 99%

Section: Political and Other Factorsmentioning

confidence: 99%

mentioning

confidence: 99%

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Productivity effects and determinants of public infrastructure investment

Mizutani

Tanaka

2008

Ann Reg Sci

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“…Aschauer, 1989;Mizutani & Tanaka, 2008or Ratner, 1983, the relation between the regional allocation of public investments and the stage of economic development (e.g. Hirschman, 1958;Kamada et al, 1998or Michel et al, 1983 or the question whether or not there is a shortage of infrastructure investment (Hulten & Peterson, 1984;Peterson, 1990or Tatom, 1991. This last perspective allows to judge the importance of infrastructure, nevertheless the literature gives no deep understanding of the processes directing the level of infrastructure (Ghosh & Meagher, 2004).…”

Section: Introductionmentioning

confidence: 99%

Politics and Public Infrastructure Investments in Local Governments: Empirical Evidence from Flemish Municipalities (1996–2009)

Goeminne

Smolders

2013

Local Government Studies

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In this paper, we estimate a public infrastructure investment function using a panel data set of 307 Flemish municipalities for the period 1996-2006. We particularly draw attention to political determinants of public infrastructure investment decisions. We show that the characteristics of the government, such as partisan affiliation and fragmentation, affect the level of public infrastructure investments Local governments are also sensitive to the investment policy of neighbouring municipalities. There is a positive interaction effect that changes own investments by 20% of that of neighbouring municipalities. Finally, elections obviously have an impact on investment policy. Investments increase the nearer elections come, with highest investments in the year before elections.

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“…Stimulating the economy during recession periods has been an important goal of the central government, in particular in the early 1990s. Reducing dispersion in regional income has also long been a major factor in the allocation of public investment (Kamada et al 1998). Per capita investment in low-income prefectures was twice that in high-income areas in 1998 despite a much higher rate of return in the latter ( Figure 3, Panel B).…”

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confidence: 99%

Getting the Most Out of Public Sector Decentralisation in Japan

Joumard

Yokoyama

2005

OECD Economics Department Working Papers

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JT00177642Revamping fiscal relations across levels of government is of paramount importance in supporting fiscal consolidation and public sector effectiveness. This paper analyses a number of problems, including regulations that limit local governments' ability to innovate and respond to local citizens' preferences, the inefficient system of intergovernmental grants, the complex structure of local taxes and fiscal rules which are too lenient to secure fiscal discipline. The paper concludes that the grant system should be reformed to promote local governments' incentives to introduce innovations so as to better respond to needs at lower cost. Barriers to the effective use of sub-national governments' taxing powers should be removed while efforts should be made to keep the tax system as simple and neutral as possible. Existing fiscal rules and market instruments should be hardened. This would require that the central government state clearly that it will not intervene as a lender of last resort to local government and ensure adequate information on local governments' outstanding and implicit liabilities is available.JEL classification: HI, H2, H7, R58.Keywords: Fiscal federalism, local government, intergovernmental grants, fiscal discipline, Japan. Optimiser l'impact de la décentralisation au JaponLa réforme des relations financières entre l'État et les collectivités territoriales est essentielle pour soutenir le processus d'assainissement budgétaire et l'efficacité du secteur public. Ce document met en lumière un certain nombre de problèmes, notamment les réglementations qui limitent la capacité des collectivités territoriales à innover et à répondre aux préférences des citoyens, un système inefficace de transferts intergouvernementaux, une fiscalité locale excessivement complexe et des règles budgétaires trop laxistes. Ce document conclut qu'une réforme du système des transferts est nécessaire pour inciter les collectivités territoriales à innover afin de répondre mieux et à moindre coût aux besoins des citoyens. Les dispositions institutionnelles qui limitent l'utilisation effective des pouvoirs des collectivités territoriales en matière d'impôts doivent être éliminées tout en s'assurant que le système fiscal soit le plus simple et le plus neutre possible. Les règles budgétaires en vigueur doivent être rendues plus strictes et le fonctionnement des marchés financiers amélioré. Cela requiert que l'État annonce clairement qu'il ne jouera pas le rôle de préteur en dernier ressort en cas de difficultés financières des collectivités territoriales et qu'il s'assure de la qualité des informations concernant leurs engagements explicites et implicites.Classification JEL : HI, H2, H7, R58.

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Decisions on regional allocation of public investment: the case of Japan

Cited by 6 publications

References 7 publications

Productivity effects and determinants of public infrastructure investment

Productivity effects and determinants of public infrastructure investment

Politics and Public Infrastructure Investments in Local Governments: Empirical Evidence from Flemish Municipalities (1996–2009)

Getting the Most Out of Public Sector Decentralisation in Japan

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