Estimation results and their significances of the fiscal transfer arising from inter-prefectural migration

The aim of this paper is to show the estimation resuits and their significances of the fiscal transfer arising from inter-prefectural migration. The estimation method by which the results in this paper are gained is shown in my another paper "Social significances and an estimation method of the fiscal transfer arising from inter-regional migration", Journal of Social System Studies, No. 11. March 2013, published by Graduate School of Social System Studies, The University of Ktiakyushu. The basic idea of this paper is that the inter-regional migration means not only "movement" but also "transfer" of economic power among regions from point of the region.　Here "transfer" means the movement or transaction that the market cannot deal with or compensate properly, then "transfer" is a sort of "market failure". Therefore the inter-regional migration is able to be a reason of redistribution of income or fiscal adjustment among regions. The main results are as follows. ① The values of fiscal transfer arising from inter-prefectural migration are so large in view of the size of the economy in prefectures that we cannot neglect. ② The values of fiscal transfer may be plus or minus, and they are very different from each other among prefectures. ③ The fiscal transfer has the function which transfers the economic power from the poor prefecture to the rich one. ④ The local grant tax has the function as a result which compensates the fiscal transfer arising from inter-prefectural migration, because there is the smaller the local grant tax is.

inter-prefectural migration

fiscal transfer

fiscal adjustment

market failure