Survival Analysis on Japanese Municipal Amalgamation

Abstract

This study considers the factors behind municipality amalgamation in Japan from fiscal year 1999 to 2005 by using survival analysis. I use a discrete-time logistic model and a 21, 165 person-year dataset. My findings show that the central government's carrot-and-stick policy strongly influenced municipality amalgamation for those with high ratios of inter-governmental grants to total revenue. Moreover, the effect of the fiscal conditions of municipalities on the timing of crating amalgamation committee and amalgamation are different.