2019 Volume 18 Pages 128-142
This research indicates the economic importance of analyzing the risk of finance by use of the data of prefectural governments in consideration of factors of cohort in addition to the pay level and the management of the number of Officials.
Laspeyres Index has played a major role to control the pay levels since its disclosure. However, the effect of monitoring personnel expenses by Laspeyres Index should be re-examined as pay levels in local governments are lower. The personnel expenses inflation tends to be caused not by the pay level but by the rise in the average age of officials. Because of that, the local governments in urban areas had to put finance on a recovery track in the past. The research indeed shows such risks of finance by the factor of cohort which haven’t been examined by previous studies in fiscal economics.
