テクニカルレポート

ディスカッション／ワーキング・ペーパー

text

OSIPP Discussion Paper. 2018, DP-2018-E-011, p. 1-26

Strategic intertemporal budget allocation of local governments in the model with spillovers and mergers

Osaka School of International Public Policy, Osaka University

英語

text

2018-09-28

http://www.osipp.osaka-u.ac.jp/archives/DP/2018/DP2018E011.pdf

Mergers of local governments, commonly referred to as municipalmergers, have been implemented widely to internalize spillover effects. Many empirical studies point out that municipalities strategically increase their debt issuance before mergers, creating the `fiscal common pool problem', because of pooled budgets after mergers. However, this phenomenon has not yet been analyzed theoretically. Therefore, this paper examines the mechanism of increased debt issuance before municipal mergers. Our results show that three different effects influence intertemporal budget allocations of municipalities at the time of a merger and the existence of externalities may reduce the severity of the fiscal common pool problem.

70594

Strategic intertemporal budget allocation of local governments in the model with spillovers and mergers

Osaka School of International Public Policy, Osaka University

英語

2018-09-28

OSIPP Discussion Paper

DP-2018-E-011

1

26

https://hdl.handle.net/11094/70594

http://www.osipp.osaka-u.ac.jp/archives/DP/2018/DP2018E011.pdf