| Project/Area Number |
05630055
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | UNIVERSITY OF TOKYO |
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Principal Investigator |
MOCHIDA Nobuki UNIVERSITY OF TOKYO,FACULTY OF ECONOMICS ASSOCIATE PROFESSOR, 経済学部, 助教授 (20157829)
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| Project Period (FY) |
1993 – 1994
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| Project Status |
Completed (Fiscal Year 1994)
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| Budget Amount *help |
¥1,300,000 (Direct Cost: ¥1,300,000)
Fiscal Year 1994: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 1993: ¥800,000 (Direct Cost: ¥800,000)
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| Keywords | intergovernmental fiscal relations / fiscal equalization / local tax / grant-in-aid / municipal bond / public goods / income redistribution / decentralization |
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| Research Abstract |
First, we made a overview of a recent development of the theory of intergovernmental fiscal relations. To investigate assignment of fiscal responsibility and resources between central and local government, we reviwed the theory which had been developed by W.E.Oates and R.A.Musgrave. We identified that traditional fiscal federalism still has a strong influence on an academic circle.At the same time we examined the "consumer-voter" hypothesis which has been advocated by C.M.Tiebout.
Second, we collected many statistics which are published by OECD,Her Majesty Stationary Office, Advisory Commission of Intergovernmemtal Relations. We compared Japanese experience in terms of intergovernmental fiscal relations with UK,US experiences during 1980s. It is important to pay attention to following phenomena.
(1) local government finance plays a key role in the macroeconomic management for stabilization purpose (2) decline in the share of property tax to total revenues and dependence on local consumption and income tax. (3) growing share of people-oriented social services in local expenditure. These phenomena indirectly indicate that traditional fiscal federalism lose its actual validity.
Third, We analyzed contemporary Japanese intergovernmental fiscal relations and sent questionnaire to 270 local public bodies in metropolitan area. We find the limitation of Japanese style absorption of financial difficulties by the existing intergovernmental fiscal relations. Attempt should be made in Japan to alter the present structure of intergovernmental fiscal relation to create a more decentralized system.
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