The coalition formation of prefectures in Japan: an experimental and a simulation approach

2014 Fiscal Year Final Research Report

• Project/Area Number: 23730319
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Monetary economics
• Research Institution: Tezukayama University
• Principal Investigator: TAKEMOTO Toru 帝塚山大学, 経済学部, 准教授 (60551512)
• Project Period (FY): 2011-04-28 – 2015-03-31
• Keywords: 地方財政 / 経済実験 / 道州制

Outline of Final Research Achievements

This research aimed to examine how the local allocation tax grants in Japan affect the consolidation of prefectures into the wider-area local governments (Doshu) by using coalition formation games in which players are prefectures. I conducted coalition formation game experiments. The experimental results showed that the strong Nash equilibrium strategy was chosen in a large majority of cases. Furthermore, the simulation results showed that the Local Allocation Tax grants hinder the consolidation of prefectures.

Free Research Field

地方財政