The analysis of Local government borrowing

2017 Fiscal Year Final Research Report

• Project/Area Number: 15H03359
• Research Category: Grant-in-Aid for Scientific Research (B)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Public finance/Public economy
• Research Institution: The University of Tokyo
• Principal Investigator: MOCHIDA Nobuki 東京大学, 大学院経済学研究科(経済学部), 教授 (20157829)
• Co-Investigator(Kenkyū-buntansha): 石田 三成 琉球大学, 法文学部, 准教授 (40571477) ; 林 正義 東京大学, 大学院経済学研究科(経済学部), 教授 (70318666)
• Co-Investigator(Renkei-kenkyūsha): NAKAZATO Toru 上智大学, 経済学部, 准教授 (30302673) ; AMOU Masatsugu 高崎経済大学, 教養部, 准教授 (60598192)
• Research Collaborator: HASHIZUME Yukako
• Project Period (FY): 2015-04-01 – 2018-03-31
• Keywords: 地方債 / 信用リスク / 格付け / 市場公募債 / 銀行等引受債 / 地方財政 / コモンプール / 救済

Outline of Final Research Achievements

The creditworthiness of municipal bonds can be divided into a portion defined by the financial situation of each issuing organization and a portion defined by a mechanism to ensure certainty of redemption of local bonds as a whole of the local fiscal system. The former and the latter are completely separated, but the former also affects the latter. Although local municipal bond market in recent years experienced events such as rapid expansion of market bond and fiscal collapse of Yubari city, expansion of interest spread which seems to be contagion risk (transmission) was observed. It is important to make policy judgment as to whether to place importance on securing inexpensive and stable fund procurement or ensuring market discipline through the formation of local bond spreads in line with the issuer's fiscal situation.

Free Research Field

財政学