Does the Majority Party affect the Allocation of Public Investment?

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  • 与党は公共投資の配分に影響を与えるのか : 自然実験を用いた実証分析
  • ヨトウ ハ コウキョウ トウシ ノ ハイブン ニ エイキョウ ヲ アタエルノカ シゼン ジッケン ヲ モチイタ ジッショウ ブンセキ

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Abstract

This paper investigates the causal effect of the majority party's seats share on public investment allocation, using prefectural data from 1981 to 1999. To take endogeneity into consideration, we use the amount of rainfall on election days as an instrumental variable. We show that the majority party has a positive impact on public investment allocation. More specifically, the majority party has positive impacts on "investment in agriculture, forestry, and fishery," investment in the conservation of national land share, and other investment, but has no impact on livelihood investment and industrial investment.

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