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Haruaki Hirota and Hideo Yunoue
''Does Broader-Based Local Government affect Expenditure on Public Long-Term Care Insurance? The Case of Japan''
( 2008, Vol. 8 No.11 )
This paper considers the possible effects of broader-based local government, especially extended associations, in Japanese local public finance. In order to evaluate the expenditure of extended association, our new approach is to apply unique index called financial index classified by similar types. We mainly analyze scale effects in public long-term care insurance expenditure, with our results indicating a U shaped expenditure structure. We also show that expenditures associated with extended associations decrease more rapidly than ordinary municipal expenditures. These findings suggest that expenditure of appropriate population size extended associations larger than single municipality.
JEL: H7 - State and Local Government; Intergovernmental Relations: General
Manuscript Received : Oct 24 2008 Manuscript Accepted : Dec 20 2008

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