Empirics of the median voter hypothesis in Japan [chapter]

Takero Doi
2000 Advances in Public Economics  
This paper offers a test of the median voter hypothesis in Japan. We have comprehensively studied the hypothesis in Japanese local finance for first time. Analyzing the hypothesis in Japan is important to investigate whether local expenditures reflects voter's preference or not. Unfortunately, we cannot obtain official data on the median (voter's) income in Japan. Therefore data by prefecture is constructed in this paper. Using this, we estimate the demand functions of local public goods in
more » ... public goods in order to test the hypothesis. We obtain the result that the median voter hypothesis is supported by prefectural finance. This result is a reasonably intuitive interpretation. In centralized local system such as Japan, the hypothesis means that the central government manages local expenditures through interregional grants to reflect the preference of the median voter in its jurisdiction.
doi:10.1007/978-3-642-57654-6_7 fatcat:gl3lt5rtqvb2bn5y37or2sfysy