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地方財政健全化指標における相互依存関係の実証分析
[Interdependency of Financial Indexes in the Law Relating to the Financial Soundness of Local Governments: Empirical evidence of Japanese prefectural data]

Author

Listed:
  • Hirota, Haruaki
  • Yunoue, Hideo

Abstract

The purpose of this paper is to evaluate an effect of new fiscal rules in the Japanese prefectural government. Especially, we focus on creative accounting [von Hagen and Wolff (2006)] in the Law Relating to the Financial Soundness of Local Governments (2007, Law No. 94). We estimated the effect of fiscal rules by using SUR model. Our results show that the new rules may have induced local governments to use stock-flow adjustments. The Japanese prefectural government increased future burden ratio introducing new rules while they decreased their deficit.

Suggested Citation

  • Hirota, Haruaki & Yunoue, Hideo, 2015. "地方財政健全化指標における相互依存関係の実証分析 [Interdependency of Financial Indexes in the Law Relating to the Financial Soundness of Local Governments: Empirical evidence of Japanese prefectural data]," MPRA Paper 61223, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61223
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal rules; creative accounting; local public finance;
    All these keywords.

    JEL classification:

    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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