The System and Role of Local Bonds Permits in Japan

  • Takero Doi
Part of the Research Monographs in Japan-U.S. Business & Economics book series (JUSB, volume 7)


In the 1990s, local public finance in Japan largely depended on the issue of bonds for revenue, because of a slowdown of economic growth and a decrease in tax revenue.1 Local bonds cumulatively increased as follows: by the end of FY 2000 they had reached around 180 trillion yen, 35% of GDP, about 1.8 times as large as the total local expenditures (about 100 trillion yen), and about 2.5 times as large as in FY 1990. Local Bonds and other borrowings that will be redeemed by local governments are shown in Figure 1.


Interest Rate Local Government Unit Root Test Simultaneous Equation Lower Interest Rate 
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© Springer Science+Business Media New York 2002

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  • Takero Doi

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