The Effect of Asset Deterioration Information on Budgetary Request

Survey Experiment for Local Government Officers

Abstract

　Japanese local governments are faced with a critical problem that they need to restrain the increment of the budget. In this paper, we examined the effect of accounting information expected to suppress the budget requirement for the next fiscal year when requesting budget. To investigate the effect, this study performs a survey experiment that focused on the suppression effect of the next fiscal year 's budget requirement for the staff of Joso City, Ibaraki Prefecture. The result shows that asset deterioration information is effective in suppressing the amount of budget required for the next fiscal year in businesses considered inefficient from administrative cost and performance evaluation.