A Comparative Study on the Soft Budget Constraints of Local Education Finance in Japan, Korea, and USA

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This research aims to investigate the soft budget constraint problem in local public finance, and to analyze how inefficiency occurs in resource allocation. Some studies have focused on the soft budget constraint problem associated with intergovernmental fiscal relations and the issuance of local bonds in Japan. This study points out the soft budget constraint problem associated with the operation of intergovernmental transfers at the form of carryover in Korea. Even though Korea has referred to Japanese systems in local public finance, the soft budget constraint problem in Korea differs from that in Japan.