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Über dieses Buch

The essays in this volume were presented to Professor Isamu Yamada in honor of his seventy-third birthday. In view of his many professional contributions and associations, a single volume of essays is really insufficient to house the works of all those who wish to be part of a venture of this kind. Therefore, the editors would like to apologize to those friends and well-wishers of Professor Yamada who could not be accommodated in this volume. Born in Nagoya in 1909, Professor Yamada began his brilliant career at Nagoya Commercial College where he studied economics, statistics, mathematics and physics. After serving as a Professor of Economics and Statistics at Yokohama College between 1939-1940, Professor Yamada moved to Hitotsubashi University in Tokyo, where he served as a Professor of Econometrics until his retirement in 1973. Currently, he is teaching at Asia University as a Professor of Economics and Statistics. During his long tenure at Hitotsubashi University (where Professor Ichiro Nakayama, a "Japanese Schumpeter", served as President of the University), Professor Yamada was instrumental in introducing several generation of students to the methods of modern econometrics. One of the editors (Ryuzo Sato) of this volume is a direct beneficiary of his lectures on modern econometric techniques. In the 1950's, Professor Yamada was one of several prominent Japanese economists who were selected for study abroad. It was during this time, on a visit to the Cowles Commission at the University of Chicago, that Professor Yamada met the other editor of this volume.

Inhaltsverzeichnis

Frontmatter

Organization: Micro and Macro

Frontmatter

Production Functions in the Analysis of Organizational Structure

Abstract
In the study of organizational structure and behavior,economic analysis backed by mathematical models can throw much light on observed practices and potential improvements. Such characteristics of organization as managerial effectiveness, span of control, organizational advantage etc. turn out to be results of not just technical relationships but of economic choice. We want to demonstrate this point by asking the following general question which is basic to the economics of organization: under what conditions is organized effort superior to individual operation ? How does the superiority of organizational effort fare when the level of organization as measured by the number of ranks increases?
Martin J. Beckmann

Revenue Maximization and Optimal Capital Policies of a Regulated Firm

Abstract
A well-known result in the theory of regulation, the Averch-Johnson effect [3], is that a profit-maximizing firm subject to a “fair” rate-of-return constraint uses an inefficiently high capital-labor ratio to produce its chosen level of output. While numerous contributions have clarified and generalized the model, these contributions have mostly been couched within a static framework. Recently, Niho and Musacchio [10] have investigated the dynamic behavior of a regulated firm whose investment plans at each moment in time are constrained from below by zero and from above by an amount proportionate to current (regulated) profits.1 Such an upper bound constraint is relevant when imperfections exist in the capital market such as credit rationing and/or the absence of a capital market in which firms may borrow.2
Yoshio Niho, Robert A. Mussachio

The Characteristics of Japanese Enterprises and their Financing

Abstract
Equipment investment was one of the most important factors which made it possible for post-war Japan to achieve an unprecedented high economic growth. In Japan it was mainly financed by borrowings from banks. Thus, financing for Japanese enterprises meant borrowing policy and implied “borrowing strategy”, that is, how to borrow large sums of money from financial institutions.
Seiichiro Saitow

Public Management: Does it Exist? How do you do it?

Abstract
One of the striking features of contemporary life in modern industrial societies is the enormous size of government and the extraordinary influence of government on the lives of the governed. For economists and other students of market forces and resource allocation problems in the “private” sector, it is becoming increasingly difficult and misleading to isolate analysis from the interactions between business and government. No matter what our particular area of interest — health, criminal justice, transportation, communication, education, “high” technologies, or defense — we find strong interactive effects between the challenges of capital formation, economic competitiveness, and industrial productivity faced by the private manager and the legal, administrative, and political forces that are the stuff of the public policy process.
Michael Nacht

Macroeconomic Foundations of Macroeconomics

Abstract
Neoclassical economics is based on the following two basic postulates, one at the individual level and the other at the aggregate level. First, individuals are rational, i.e., they make wise decisions taking all the available alternatives into account. Second such individual rationality is carried over to the aggregates, i.e., the aggregate behaviour never errs systematically. In other words, a million sages always make a great sage. The Keynesian counterparts of these postulates, in contrast, are, first, that individuals may not be so rational, and second, that even if they are, a million sages can make a great fool.
Keizo Nagatani

Notes on Reaganomics

Abstract
President Reagan is not an economist and has never claimed to be one, although he had a course in the subject as an undergraduate at Eureka College (Eureka, IL) and has made authoritative pronouncement on economic matters. It should therefore surprise no one to find, as I think I have found, that his economics is a mixture or hash of ideas from several sources imperfectly compatible with each other. The professionals are by no means free from this weakness, if it is one; many if not most amateurs and autodidacts suffer from more severe cases of the malady.
Martin Bronfenbrenner

Economic Structure

Frontmatter

The Economics of Incentives, an Introductory Account

Abstract
From its infancy in the 18th century, the framework of economic analysis has had three major ingredients. First, it takes as axiomatic that economic agents act on their own behalf, with or without sympathy for others. It does not judge self-interested action to be immoral or unworthy of serious study. Quite the contrary, it suggests that the pursuit of one’s own interest describes well economic behavior and asks us to develop its consequences. Second, the framework takes social equilibrium to be the concern of economic analysis. Economics is a branch of social science, and as such it requires at least two potent actors. The laws of physics and the chemistry exist in the absence of mankind. For psychology it may be enough that there is a single human being. However, for sociology, political science, and economics, you need at least two people. Finally, the framework of economic analysis takes the goals of individual economic agents to be in conflict; it views it as the business of economics social science to determine the extent to which this conflict does or does not result in the efficient use of resources, promote the social good, and so on.
Hugo Sonnenschein

Economic Equilibrium under Price Rigidities and Quantity Constraints

Abstract
Drèze [2] considers the existence of an exchange equilibrium under price rigidities. In the present paper we will reconsider the same subject, attempt to resolve some questions regarding his paper and also to extend the analysis.
Hanjiro Haga, Akio Matsumoto

A Necessary and Sufficient Condition for a Continuously Rational Social Choice

Abstract
It was Kelly [1971] who first posed the question asking whether or not it is possible to obtain a continuous social preference even when each individual preferences are known to be continuous. Saposnik [1975] provided a partial answer to it by introducing sufficient conditions for a continuous social choice. This paper is an attempt to obtain a much weaker sufficient condition, and also to show that the condition is also necessary.
Yasu Hosomatsu

The Behavior of Resource Explorating Firm under Stochastic World

Abstract
In this paper, we will be mainly concerned with resource exploration problem under uncertainty. Much of papers in this area have been written in deterministic context. And under the exhaustible resources assumption, their obtained results were the optimal behavior of price or the optimal policy about extraction rate. However, we deal with the resource exploration problems under the assumption that resource is unexhaustible while only the firm which has the royalty can extract the resource. The royalty of extraction is given to the firm that succeeds in exploration at first, and all other firms couldn’t extract the resources. Under these circumstances, each firm will invest for the exploration for the purpose of acquiring the right of extraction. In other words, they content with the success of exploration. In what follows, we will acquire for the optimal condition of exploration under uncertainty.
Haruo Ogawa

Note on Kakwani and Podder Method of Fitting Lorenz Curves

Abstract
The Lorenz curve is a useful device to depict the characteristics of income and wealth distributions in terms of the degree of equality of the underlying distribution. In practice, income (or wealth) data by individuals or households categories are collected and used to generate discrete sets of cumulative percentages of income (wealth) and of individuals (households). Through these discrete cumulative percentage observations, some continuous Lorenz curve is fitted.
Gilbert S. Suzawa

Alternative Matrix Consistent Methods of Multilateral Comparisons for Real Product and Prices

Abstract
In what follows of this article, we shall be concerned with an alternative to the Geary-Khamis method, which is current in use for the multilateral international comparisons of real GDP. Section 2 forms the substantial part of this article. In the section, we shall present variant models for international comparisons which are constructed on a novel interpretation of the matrix consistency and the reformulation of the international prices by commodity. It will be shown in the first model, which is termed K-S S method, that the quantity measures are solved from the model as a Perron-Frobenius vector immediately leading to the solution of PPP. After this, it will be demonstrated that the method is reduced to a generalization of van Yzeren’s method of homogeneous groups demonstrating that his method satisfies the matrix consistency. In the method weights are supposed to be a priori given. Our second model is an attempt that it is freed from fixing a priori weights. It will be shown in the model that weights are given at a fixed point whose existence is ascertained by Brouwer’s fixed point theorem and that the quantity measure be derived from the model as a Perron-Frobenius vector evaluated at the fixed point. In section 3, PPP and the corresponding quantity measures for GDP and its major breakdowns by ICP country are computed by the use of ICP data. It will be discovered by the comparisons of the results that the margin of measurements is admissibly small not only within our methods but also between our methods and other typical methods for multilateral comparisons. In final section, we shall refer to some unsettled point left untouched in this article indicating directions for furthering our research. This article is also appended with two short technical notes.
Yoshimasa Kurabayashi, Itsuo Sakuma

Technology

Frontmatter

Differentiable Manifolds and Economic Structures

Abstract
Recently, the global theory of geometry [1] has played a prominent role in the fields of applied mathematics. In the near future, such a tendency will display also in mahtematical economics. The purpose of this paper is to propose a geometrical approach to the problem of economic structures. In particular, an economic application of the manifold theory is discussed from a standpoint of global analysis or analysis on manifolds.
Mineo Ikeda

On the Local Conservation Laws in the Von Neumann Model

Abstract
P. Samuelson was the first economist to introduce the idea of the law of conservation in classical mechanics into economics. He has shown in his very important paper [7] that two types of conservation laws operate along the optimal path in a closed, consumptionless system of the von Neumann type. The famous theorem [4] on the conservation laws states that the Hamiltonian is conserved in cases where the Lagrangian does not involve time t explicitly. Samuelson applied this theorem to his own model and derived the following two results. Namely, 1) Ω1=λY=const., that is, the product of the implicit price λ and the national income Y is conserved and 2) Ω2=λW=const., that is, the product of the implicit price λ and the national wealth W is also conserved. These two laws are reducible to Ω12=Y/W=const., that is, the aggregate output-capital (wealth) ratio is always constant.
Haruo Kataoka

Economic Growth and Biased Technical Change: The Japanese Experience

Abstract
The purpose of this paper is to estimate and examine the rate of biased technical change and the rate of total factor-productivity change in Japanese industries for the period 1953–69. The theory of technical change (and productivity change), as most economists know, has been developed by Solow [1953], Kendrick and Sato [1963], Jorgenson [1967], Sato [1970] and others. In this paper, the Sato [1970] model of biased technical change is utilized for estimation purposes.
Koji Inada

Notes on Exact Aggregation

Without Abstract
Thomas Russell

Invariance Principle and “G-Neutral” Types of Technical Change

Abstract
In Sato [1980, 1981] it is shown that the method of Lie group theory is a powerful technique to characterize the production function and technical change. The main purpose of this paper is to develop a general theory of neutral technical change from the point of view of Lie theory, without assuming that the production function is homogeneous of degree one with respect to the productive factors. The concepts and methods used in this work are completely the same as in Sato [1981]. In II, we shall define the concepts of G-neutrality of technical change, equations of G-neutrality, and G-neutral production functions, for a Lie transformation group G of the 3-space. The Lie theory of transformation groups is used to find the form of equations of G-neutrality and G-neutral production functions. From a natural reason we might assume that these groups are Lie subgroups of the general projective group GP(3,R) of the 3-space. In III, as illustrative examples, Sato-Beckmann types of neutralities [1968] are investigated for different types of technical change.
Ryuzo Sato, Takayuki Nôno

Backmatter

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