Affiliation:
1. Department of Economics, Hitotsubashi University , Japan
Abstract
AbstractDuring the 2000s, Japanese bureaucrats were actively transferred away from the central administration to mentor and monitor local governments. Using a dynamic difference-in-differences model under heterogeneous treatment effects that exploit the timing of these transfers and a rich city-level panel dataset, this study finds that municipalities with transferred central administrators improve their fiscal discipline, mainly by shrinking expenditures. The effects are persistent and continue for years after the arrival of the central administrator and even after the transfer ended (JEL H72, H74, K34).
Publisher
Oxford University Press (OUP)
Subject
Law,Organizational Behavior and Human Resource Management,Economics and Econometrics