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| Yoshito Funashima |
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| ''Counter-cyclical policy and political manipulation: An empirical analysis of Japanese government expenditures'' |
| ( 2012, Vol. 32 No.3 ) |
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| Distinguishing accurately pure macroeconomic stabilization policies from election-motivated manipulations might be a difficult task within the framework of regression analysis. This paper attempts to demonstrate that the simple introduction of frequency-domain perspective provides a direct means of identifying portions of underlying components of Japanese public expenditures. We find that public investment behaves counter-cyclically over the business cycle, and not only public investment but also public consumption is manipulated for the House of Councillors elections. |
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| Keywords: public expenditures, frequency-domain perspective |
JEL: D7 - Analysis of Collective Decision-Making: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General |
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| Manuscript Received : Jul 01 2012 | | Manuscript Accepted : Jul 12 2012 |
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