Public investment and business cycles: The case of Japan

Miyazaki, Tomomi

doi:10.1016/j.asieco.2009.04.001

Cited by 13 publications

(9 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“… For example, Miyazaki () using a structural VAR model finds that public investment in construction has an insignificant impact contemporaneously on output, although central government investment has a persistent and positive impact over time. Ihori et al .…”

mentioning

confidence: 99%

“…For example,Miyazaki (2009) using a structural VAR model finds that public investment in construction has an insignificant impact contemporaneously on output, although central government investment has a persistent and positive impact over time Ihori et al (2003),. using VAR analysis, finds that public investment marginally stimulates private consumption in the 1990s, but crowds out private investment more so than prior to the 1990s Afonso and Aubyn (2008).…”

mentioning

confidence: 99%

See 1 more Smart Citation

Local Government Spending Multipliers and Financial Distress: Evidence from Japanese Prefectures

Brückner

Tuladhar

2013

Econ J

View full text Add to dashboard Cite

We estimate local government spending multipliers using annual data for 47 Japanese prefectures during the 1990s. Our main findings are as follows: the average local government spending multiplier is positive and significantly different from zero but not larger than one; there are large and significant differences in the output effects of different types of government expenditures: transfers to firms have the highest multiplier, significantly larger than one, while transfers to households have the lowest multiplier, significantly below zero; firms' financial distress has a significant negative effect on the local government spending multiplier, in contrast to economic slack that has a significant positive effect.The effectiveness of government spending during times of financial crisis is an intensely debated issue. Both in academic and policy circles, the views are split on how effective government spending is in resuscitating the economy. Fiscal conservatives warn that large increases in government spending can lead to an unsustainable increase in the stock of public debt and caution therefore about the adverse effects that an expansionary fiscal stance can have on the economy in the long run; see, for example, Auerbach and Gale (2010). Yet even from a short-run, business-cycle perspective there is little consensus among macroeconomists on whether fiscal policy is effective in stimulating the economy; see Hall (2009), andCogan et al. (2010) for an overview of the literature. Most of the academic debate is theoretical in nature and, so far, there is little evidence from rigorous econometric analysis on the size of the government spending multiplier during times of financial crisis.In this article we seek to make an empirical contribution to the debate on whether government expenditures are effective in stimulating economic activity during times of financial crisis by using a rich dataset of regional government expenditures in JapanWe are grateful to the editor and three anonymous referees for very helpful comments and suggestions. We also thank

show abstract

mentioning

confidence: 99%

mentioning

confidence: 99%

Local Government Spending Multipliers and Financial Distress: Evidence from Japanese Prefectures

Brückner

Tuladhar

2013

Econ J

View full text Add to dashboard Cite

show abstract

“…Second, like Miyazaki (2009), it is also assumed that we compare the effects of investment between central and local governments because it may matter whether government investment in the local economy is conducted by the central government or by the local government. These issues remain for future research.…”

Section: Resultsmentioning

confidence: 99%

“…Actually, these motives might be disguised in an economic stimulus package, as suggested in Hanai et al (2000) and Miyazaki (2009). Therefore, an investigation of the relationship between public investment and regional business cycle fluctuations in Japan may be helpful in ascertaining whether or not regional public investment amplifies the business cycle fluctuations in the region.…”

Section: Introductionmentioning

confidence: 99%

Public investment and regional business cycle fluctuations in Japan

Miyazaki

2016

Applied Economics Letters

Self Cite

View full text Add to dashboard Cite

This paper examines the relationship between public investment and regional business cycle fluctuations in Japan. In particular, we focus on the effects of "discretionary" changes in public investment, a portion of investment unrelated to the current state of macroeconomic circumstances. The empirical results show that such portions of public investment amplify regional business cycle fluctuations.

show abstract

“…15 As the crowding-in effect is determined by the interaction between "current" public and private investment, at first glance, it appears that the dynamic effects should not be considered in our estimation. However, Asako (2000) and Miyazaki (2009) show that the lag in the effect of public stimulus investment packages is nine months at the longest. Following this, it might be better to at least add a one-year lagged value of…”

Section: Empirical Modelmentioning

confidence: 99%

Interactions between regional public and private investment: evidence from Japanese prefectures

Miyazaki

2017

Ann Reg Sci

Self Cite

View full text Add to dashboard Cite

This study examines the effects of government investment on private capital formation, considering both regional and sectoral distinctions in Japan. The empirical results show that a crowding-out effect is observed in rural areas for several industries that contribute to regional economic growth. This suggests that the allocation of public stimulus investment packages to stagnant regions in Japan might act as a regional growth constraint as well as an obstacle to the capital formation, and stagnant regions cannot evade the stagnation even if the central government plans economic stimuli toward such regions, including public investment.

show abstract

Public investment and business cycles: The case of Japan

Cited by 13 publications

References 10 publications

Local Government Spending Multipliers and Financial Distress: Evidence from Japanese Prefectures

Local Government Spending Multipliers and Financial Distress: Evidence from Japanese Prefectures

Public investment and regional business cycle fluctuations in Japan

Interactions between regional public and private investment: evidence from Japanese prefectures

Contact Info

Product

Resources

About