抄録
Few empirical analyses based on the decentralized local public finance model have ever appeared in Japan. It is because that the system of intergovernmental relationship is totally centralized. However, Nagamine (1992) intended to estimate the demand function for local public goods based on the median voter model using the data at the prefecture level. And the result showed that there was room for adjusting the decentralized model to such unsubsidized projects expenditure of which a local government could have discretion to some extent about how to spend a budget. In this paper, we extend Nagamine (1992) 's analysis and pick up only the part of unsubsidized projects expenditure from each expenditure category which are classified by purpose at the prefecture level. And again we empirically investigate the possibility of adjusting the decentralized public goods demand model to such expenditure category in which regional discretion could be more operative.
While the estimation results are not like the one we expected, namely it does not so strongly reflect regional discretion, they are almost identical with the previous analysis in which we examined the total amount of expenditure classified by purpose. Still, the estimation results are classified into either the public good demand type or the inter-regional redistribution type. The result about public works, which occupies the most part in unsubsidized projects expenditure, supports the framework based on both the public goods demand model and the median voter model.
