Women and Risk-Taking Behavior in Local Public Finance

Abstract

This study examines how female representation in local elected (mayor and legislature) and administrative (mid-level manager) positions influences municipal financial decision making in 764 Japanese city-level governments. Findings show that female representation in local councils is positively correlated with risk-averse behavior in financial decisions, as female representation on the legislature is negatively associated with issuing municipal bonds as well as with local investment in public corporations. Female representa-tion in executive (mayor and vice-mayor) and mid-level administrative managerial positions has no appar-ent effects on local financial decisions. This study tests existing explanations of relationships between female managerial representation and fiscal behavior in an Asian developed setting characterized by con-siderable underrepresentation of women in politics. The