An Empirical Analysis on the Strategic Behavior of the Non-Merging Municipalities

本分析的目的是探讨大平成合并对未合并直辖市财政行为的影响。我们发现，未合并的市政当局减少人员开支，从而增加对基础设施的投资。没有合并的地方自治团体也有可能通过尺度竞争实现高效经营改革。

The objective of this analysis is to investigate the effects of the Great Heisei Merger on fiscal behavior of the non-merging municipalities. We show that the non-merging municipalities reduce personnel expenses so as to increase investment in infrastructure. There is a possibility that the reforms toward efficient management in the non-merging municipalities are achieved through yardstick competition.