@article{oai:nagoya.repo.nii.ac.jp:00016289,
 author = {Ogawa, Hikaru and Bessho, Shun-ichiro},
 issue = {E13-5},
 journal = {Economic Research Center Discussion Paper},
 month = {Jul},
 note = {This paper studies how Japanese municipalities restore their fiscal balance after a budget shock. The results show that fiscal adjustments to a shock are mainly made by subsequent changes in government investment and government consumption: about 80-89% (21-24%) of a permanent unit innovation in grants and own revenue is adjusted by changes in government investment (consumption). The contribution of government expenditure in balancing local budgets is much larger in Japan than in other countries. In contrast to the role played by the expenditure side, the municipalities’ own-source revenue plays a limited role in the adjustment process of local budget balancing. In addition, it is observed that government investment is highly volatile in Japan than in other countries. However, the magnitude of volatility in municipalities’ own revenue and grants is small, implying that the municipalities face restrictions in adjusting their fiscal balance by own-source revenue and the higher-level government provides grants rigidly. This paper additionally analyzes a sample based on population size and time period.},
 title = {Fiscal Adjustment in Japanese Municipalities},
 year = {2013}
}