Financial impacts of standardized system specifications: evidence from japanese municipalities

This paper examines whether standardized system specifications improve the fiscal efficiency of local governments. Although ICT has been widely promoted through e-government initiatives to improve government operations, the effectiveness of system standardization has received limited attention. We study Japan’s Regional Information Platform (RIP), a standardized system specification that facilitates interoperability across municipal administrative systems and weakens vendor lock-in. Building on a model of municipal procurement under switching costs, we show that standardization reduces expenditure through two channels: weakened vendor lock-in that lowers system costs, and improved cross-departmental interoperability that reduces labor input. Using variation in RIP adoption across Japanese municipalities, we estimate difference-in-differences models and find that RIP adoption substantially reduces per capita total expenditure. These findings suggest that e-government outcomes depend not only on ICT adoption itself but also on whether administrative systems are standardized and interoperable.

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Publication Details

Journal
International Tax and Public Finance
Published
2026-06-27
DOI
https://doi.org/10.1007/s10797-026-09986-0
Primary Topic
E-Government and Public Services
Type
article
Field-Weighted Citation Impact
0.00

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article

Financial impacts of standardized system specifications: evidence from japanese municipalities

Naruki Notsu, Yu Osaki, Shuko Harada
International Tax and Public Finance
E-Government and Public Services
article

Financial impacts of standardized system specifications: evidence from japanese municipalities

Naruki Notsu, Yu Osaki, Shuko Harada
article en

Abstract

This paper examines whether standardized system specifications improve the fiscal efficiency of local governments. Although ICT has been widely promoted through e-government initiatives to improve government operations, the effectiveness of system standardization has received limited attention. We study Japan’s Regional Information Platform (RIP), a standardized system specification that facilitates interoperability across municipal administrative systems and weakens vendor lock-in. Building on a model of municipal procurement under switching costs, we show that standardization reduces expenditure through two channels: weakened vendor lock-in that lowers system costs, and improved cross-departmental interoperability that reduces labor input. Using variation in RIP adoption across Japanese municipalities, we estimate difference-in-differences models and find that RIP adoption substantially reduces per capita total expenditure. These findings suggest that e-government outcomes depend not only on ICT adoption itself but also on whether administrative systems are standardized and interoperable.

International Tax and Public Finance
Mitsubishi UFJ Research & Consulting (Japan) (JP), Toneyama National Hospital (JP), Osaka International University (JP)
Osaka University
Decent work and economic growth
Openalex Percentile: Top 2%
E-Government and Public Services
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