International Comparison of Intergovernmental fiscal relations -a review of fiscal federalism-

点击翻译按钮获取中文摘要

First, we made a overview of a recent development of the theory of intergovernmental fiscal relations. To investigate assignment of fiscal responsibility and resources between central and local government, we reviwed the theory which had been developed by W.E.Oates and R.A.Musgrave. We identified that traditional fiscal federalism still has a strong influence on an academic circle.At the same time we examined the "consumer-voter" hypothesis which has been advocated by C.M.Tiebout.Second, we collected many statistics which are published by OECD,Her Majesty Stationary Office, Advisory Commission of Intergovernmemtal Relations. We compared Japanese experience in terms of intergovernmental fiscal relations with UK,US experiences during 1980s. It is important to pay attention to following phenomena.(1) local government finance plays a key role in the macroeconomic management for stabilization purpose (2) decline in the share of property tax to total revenues and dependence on local consumption and income tax. (3) growing share of people-oriented social services in local expenditure. These phenomena indirectly indicate that traditional fiscal federalism lose its actual validity.Third, We analyzed contemporary Japanese intergovernmental fiscal relations and sent questionnaire to 270 local public bodies in metropolitan area. We find the limitation of Japanese style absorption of financial difficulties by the existing intergovernmental fiscal relations. Attempt should be made in Japan to alter the present structure of intergovernmental fiscal relation to create a more decentralized system.