Fiscal Stimulus as Suicide Prevention: Evidence from the Great Depression in Japan, 1932-1935

Exploiting regional variation in local public spending during the Great Depression in Japan in the early 1930s, this study examines the effects of expansionary fiscal policy on suicide rates. Drawing on historical regional panel data from 1899 to 1938, the analysis shows that increases in local spending alleviated the rise in suicides during the Depression. The effects are particularly pronounced among young men and non-employed individuals. These findings suggest that the unprecedented fiscal stimulus contributed to reducing suicide, particularly among young men, in a manner consistent with an employment channel linked to public works spending.