Local government spending multipliers and financial distress: evidence from Japanese prefectures

Brueckner, Markus and Tuladhar, Anita (2014) Local government spending multipliers and financial distress: evidence from Japanese prefectures. Economic Journal, 124 581: 1279-1316. doi:10.1111/ecoj.12076


Author Brueckner, Markus
Tuladhar, Anita
Title Local government spending multipliers and financial distress: evidence from Japanese prefectures
Journal name Economic Journal   Check publisher's open access policy
ISSN 0013-0133
1468-0297
Publication date 2014-12
Year available 2013
Sub-type Article (original research)
DOI 10.1111/ecoj.12076
Open Access Status
Volume 124
Issue 581
Start page 1279
End page 1316
Total pages 38
Place of publication Chichester, West Sussex, United Kingdom
Publisher Wiley-Blackwell Publishing
Collection year 2015
Language eng
Abstract We estimate local government spending multipliers using annual data for 47 Japanese prefectures during the 1990s. Our main findings are as follows: the average local government spending multiplier is positive and significantly different from zero but not larger than one; there are large and significant differences in the output effects of different types of government expenditures: transfers to firms have the highest multiplier, significantly larger than one, while transfers to households have the lowest multiplier, significantly below zero; firms' financial distress has a significant negative effect on the local government spending multiplier, in contrast to economic slack that has a significant positive effect.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Non HERDC
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 3 times in Thomson Reuters Web of Science Article | Citations
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Created: Thu, 05 Feb 2015, 15:14:49 EST by Alys Hohnen on behalf of School of Economics