An Analysis of the Effects of Municipal Merger on Local Public Finance and Public Resource Allocation

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I examined the Heisei municipal merger started by the Special Mergers Law amendment in 1999. Almost all mergers were realized in front of Due Date of the Law in which they could receive financial support. At that time, it was the shock of local allocation grant in the trinity reform that gave municipalities the incentive to merge. Also it was clarified in this research that the municipalities which merged were faced with the government reform, how to maintain the old public offices and citizen services, and how to encourage public officials to work positively.