Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965047 | Journal of the Japanese and International Economies | 2009 | 12 Pages |
Abstract
Japan's electoral reform in 1994 offers an exogenous variation in the public capital investment across regions, and we exploit this event to estimate the causal effect of public capital on production. The reform drastically changed the distribution of political representation in the Lower House across regions, and it accordingly changed the allocation of public capital across regions as well. We cannot reject the null hypothesis that public capital is not productive based on the estimates from this natural experimental identification strategy.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Daiji Kawaguchi, Fumio Ohtake, Keiko Tamada,