Fiscal reconstruction and local interest groups in Japan

Takero Doi, Toshihiro Ihori

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)


This paper investigates the politicoeconomic properties of the fiscal reconstruction process in Japan by analyzing the dynamic game among local interest groups with concessions of region-specific privileges. Free-riding behavior of local interest groups brings numerous deficits. Our empirical evidence indicates that local privileges were powerful in the 1990s, which is the main reason fiscal reconstruction did not perform very well in the 1990s.

Original languageEnglish
Pages (from-to)492-511
Number of pages20
JournalJournal of The Japanese and International Economies
Issue number4
Publication statusPublished - 2002 Dec


  • Fiscal reconstruction
  • Free riding
  • Local interest group

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations


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