Prefectural Governors' Choices in “the Trinity Reform” of Local Finance:

Quantitative Analysis on the Subsidy Reform in the Japan National Governors' Association in 2004

Abstract

In 2004, local governments were faced with so - called “the Trinity Reform” of local finance, which included local government budget cut. In this reform, prefectural governors were forced to decide whether or not they agree to the reform or what subsidies they abandoned. Through looking at this reform, this paper analyses the decision - making mechanism of governors on local government finance. Quantitative analysis finds that governors' policy choice was influenced by political conditions that they faced such as support from a prefectural assembly, their number of terms in office, their former job before taking office, and their memberships in unofficial policy study groups of “the Reforming Governors” instead of the fiscal or socio - economic conditions of prefectures.