Fiscal Sustainability of Japanese Prefectural Government Debt


This paper investigates whether the Japanese local government debt is sustainable. We apply the fiscal stabilization rule that each local government improves their primary balance in the current year when they issue additional debt the previous year. We check it using panel data of the Japanese prefectural governments. We find that Japanese prefectural governments were not sustainable across 1956-2007, though were sustainable across 1956-1989.

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Akamatsu, R. and Hiraga, K. (2015) Fiscal Sustainability of Japanese Prefectural Government Debt. Open Journal of Social Sciences, 3, 88-92. doi: 10.4236/jss.2015.38009.

Conflicts of Interest

The authors declare no conflicts of interest.


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