The research on financial soundness of local governments under the Act on Assurance of Sound Financial Status of Local Governments in Japan

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530344
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Niigata University
• Principal Investigator: SUMI EIJI 新潟大学, 人文社会・教育科学系, 准教授 (60337219)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 財政学 / 地方財政学 / 地方財政健全化法 / 健全化判断比率

Outline of Final Research Achievements

This study investigated whether new system of financial reconstruction of local　governments promoted financial soundness of local government under the Act on Assurance of Sound Financial Status of Local Governments that was enacted in 2007 in Japan. The empirical results suggest that financial soundness was especially promoted in municipalities in the Early Financial Soundness Restoring Stage that force to achieve financial soundness quickly, by reducing their burden of local bonds and improving their financial balances. The results indicate that institutional reform of financial reconstruction of local governments have effect of their financial soundness in the early stage.

Free Research Field

地方財政学