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Amalgamation, free-ride behavior, and regulation
Amalgamation incentivizes municipalities to increase public debt because it allows them to subrogate their repayment and interest burden on the entire municipality after amalgamation. Especially, the smaller municipality tend s to accumula te public debt in order to free ride Previous literature has...
שמור ב:
| הוצא לאור ב: | MAGKS - Joint Discussion Paper Series in Economics (Band 39-2013) |
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| מחבר ראשי: | |
| פורמט: | Artikel |
| שפה: | אנגלית |
| יצא לאור: |
Philipps-Universität Marburg
2013
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| נושאים: | |
| גישה מקוונת: | PDF-Volltext |
| תגים: |
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| סיכום: | Amalgamation incentivizes municipalities to increase public debt because it allows them to subrogate their repayment and interest burden on the entire municipality after amalgamation. Especially, the smaller municipality tend s to accumula te public debt in order to free ride Previous literature has shown this kind of opportunistic behavior in countries where municipalities can issue bonds freely in the market. However, public borrowing by municipalities is strongly controlled in Japan. T his study examines t he relationship between regulation of local go vernment borrowing and the free ride behavior of Japanese municipalities on amalgamation. Difference in difference regression confirms the free ride effect, which is however wholly counterbalanced by regulation |
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| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0201 |