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Spending Without TaxationFILP and the Politics of Public Finance in Japan$
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Gene Park

Print publication date: 2011

Print ISBN-13: 9780804773300

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804773300.001.0001

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The Electoral Logic of FILP Allocations, 1960–1993

The Electoral Logic of FILP Allocations, 1960–1993

(p.122) Five The Electoral Logic of FILP Allocations, 1960–1993
Spending Without Taxation
Stanford University Press

This chapter examines whether in fact the Fiscal Investment Loan Program (FILP) provided a useful resource for the Liberal Democratic Party (LDP). It addresses two specific questions. First, did FILP help the ruling LDP win elections? Second, did the ruling party steer FILP distributions to its political supporters? If it can be shown that this were the case, it would provide stronger evidence that FILP bridged the interests between the pork-barrel wing of the LDP and the government's goal of budget restraint. The results of empirical tests confirm that FILP distributions have in fact helped the ruling party during elections and that the ruling party rewarded its supporters with distributions from FILP. The data, model, and results are discussed.

Keywords:   Fiscal Investment Loan Program, fiscal policy, Liberal Democratic Party, elections, budget restraint

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