Japan ’ s “ Furusato Nouzei ” ( Hometown Tax ) : Which areas get how much , and is it really
نویسنده
چکیده
In 2015, over 7 million Japanese citizens donated a total of ¥165,291,021,000 (approximately 1.5 billion USD) to municipalities in which they did not live in using the “Furusato Nouzei” system, which was developed as a means to revitalize rural areas in the country (Ministry of Internal Affairs and Communications). In this paper, I examine this system in two ways. First, I predict the amount of donations each municipality receives based on a number of explanatory variables. Second, I run a 2SLS difference-in-differences regression to see if the tax was successfully redistributing wealth from city centers to rural areas, using an increase in municipal-level expenditure as a proxy. JEL codes: H2, H21, H27
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