“…3 In this paper, "Public Assistance" refers to a specific social assistance scheme in Japan.4 The term "transfer deficit" was kindly suggested by Professor Pedro P. Barros. 5 SeeHäkkinen and Luoma (1995),Gordon et al (1997), DiMatteo and Di Matteo (1998), Cantarero (2005),Crivelli et al (2006),Scheffler and Smith (2006), Costa-Font and Pons-Novell(2007), Moscone et al (2007), Andersson and Henriksen (2008), Rahman (2008), Mays and Smith (2009), and Costa-Font (2010).…”