The purpose of this article is to determine whether there is a trade-off between the growth and the stability of Japanese prefectural tax revenues. This article employs long-term income elasticity as a measure of growth and short-term income elasticity as a measure of stability and estimates the correlation coefficients between growth and stability in a cross-sectional manner. Our results indicate that there are trade-offs between the growth and stability of local corporate and consumption taxes, but there is no clear relationship between growth and stability for other taxes. © 2013 Copyright Taylor &amp
Francis Group, LLC.