CIRJE-J-260 『地方政府債務の持続可能性』
"Debt Sustainability Analysis at Subnational Level"
Author Name

持田信樹 (Nobuki Mochida)

Date May 2014
Full Paper

PDF file (only Japanese version available)

Remarks  日本財政学会編『協働社会における財政』財政研究11巻、2015、141-165頁 掲載。
Abstract (Japanese) Abstract (English)
 

 

 

 


How do local governments react to the accumulation of debt? Whereas public debt/GDP ratio has reached the worst levels in Japan, this paper provides evidence of corrective action: the marginal response of primary surpluses to changes in debt is increasing in the debt-GDP ratio. This paper also raises a puzzle that local governments in the rural area take corrective measure when the debt-GDP ratio starts rising, while local governments of the metropolis let the debt grow.