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Legislative Influences in Japanese Budgetary Politics

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  • Meyer, Steven A
  • Naka, Shigeto

Abstract

Following World War II (W.W.II), Japan adopted a democratic parliamentary system. Since its formation in 1955 the Liberal Democratic Party (LDP) had monopolized Japanese legislature (Diet) for over 35 years. However, it is said that at the center of the budgetary process was the Ministry of Finance (MOF). Elite bureaucrats rather than politicians are typically seen as the agenda-setter. The action of politicians, in particular members of the LDP, to influence the budgetary resource allocation has been largely unexamined. This paper empirically examines the influence of the LDP on the supplementary budget formation and on the revenue-sharing. The authors find that the LDP had a significant impact on the budget formation. Further, they find that the LDP manipulated transfers from the central government to local governments presumably to maintain its electoral positions. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Meyer, Steven A & Naka, Shigeto, 1998. "Legislative Influences in Japanese Budgetary Politics," Public Choice, Springer, vol. 94(3-4), pages 267-288, March.
    • Handle: RePEc:kap:pubcho:v:94:y:1998:i:3-4:p:267-88
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    Citations

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    Cited by:

    1. Eiji Yamamura & Yoshiro Tsutsui & Fumio Ohtake, 2016. "Relative Income Position and Happiness: Are Cabinet Supporters Different from Others in Japan?," The Japanese Economic Review, Springer, vol. 67(4), pages 383-402, December.
    2. Daiji Kawaguchi & Fumio Ohtake & Keiko Tamada, 2005. "The Productivity of Public Capital: Evidence from the 1994 Electoral Reform of Japan," ISER Discussion Paper 0627, Institute of Social and Economic Research, Osaka University.
    3. Steven A. Meyer & Shigeto Naka, 1999. "The Determinants Of Japanese Local‐Benefit Seeking," Contemporary Economic Policy, Western Economic Association International, vol. 17(1), pages 87-96, January.
    4. Masami Imai, 2009. "Political Influence and Declarations of Bank Insolvency in Japan," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(1), pages 131-158, February.
    5. Masami Imai, 2009. "Political Determinants of Government Loans in Japan," Journal of Law and Economics, University of Chicago Press, vol. 52(1), pages 41-70, February.
    6. Kawaguchi, Daiji & Ohtake, Fumio & Tamada, Keiko, 2009. "The productivity of public capital: Evidence from Japan's 1994 electoral reform," Journal of the Japanese and International Economies, Elsevier, vol. 23(3), pages 332-343, September.
    7. Mr. Ian Lienert, 2005. "Who Controls the Budget: The Legislature or the Executive?," IMF Working Papers 2005/115, International Monetary Fund.
    8. Kozo Harimaya & Koichi Kagitani & Hirofumi Tominaga, 2010. "Political Economy Of Government Spending For Trade Liberalization: Politics Of Agriculture Related Government Spending For The Uruguay Round In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 159-174, June.

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