Applied Approaches to Societal Institutions and Economics: Essays in Honor of Moriki Hosoe

364 Pages·2017·6.479 MB·English

by  Tohru Naito, Woohyung Lee, Yasunori Ouchida (eds.)

New Frontiers in Regional Science: Asian Perspectives 18
Tohru Naito
Woohyung Lee
Yasunori Ouchida E ditors
Applied Approaches
to Societal
Institutions and
Economics
Essays in Honor of Moriki Hosoe
New Frontiers in Regional Science:
Asian Perspectives
Volume 18
EditorinChief
YoshiroHigano,UniversityofTsukuba
ManagingEditors
MakotoTawada(GeneralManagingEditor),AichiGakuinUniversity
KiyokoHagihara,BukkyoUniversity
LilyKiminami,NiigataUniversity
EditorialBoard
SakaiYasuhiro(AdvisorChiefJapan),ShigaUniversity
YasuhideOkuyama,UniversityofKitakyushu
ZhengWang,ChineseAcademyofSciences
YuzuruMiyata,ToyohashiUniversityofTechnology
HiroyukiShibusawa,ToyohashiUniversityofTechnology
SaburoSaito,FukuokaUniversity
MakotoOkamura,HiroshimaUniversity
MorikiHosoe,KumamotoGakuenUniversity
BudyPrasetyoResosudarmo,CrawfordSchoolofPublicPolicy,ANU
Shin-KunPeng,AcademiaSinica
GeoffreyJohnDennisHewings,UniversityofIllinois
EuijuneKim,SeoulNationalUniversity
SrijitMishra,IndiraGandhiInstituteofDevelopmentResearch
AmitrajeetA.Batabyal,RochesterInstituteofTechnology
YizhiWang,ShanghaiAcademyofSocialSciences
DanielShefer,Technion-IsraelInstituteofTechnology
AkiraKiminami,TheUniversityofTokyo
AdvisoryBoard
PeterNijkamp(Chair,ExOfficioMemberofEditorialBoard),TinbergenInstitute
RachelS.Franklin,BrownUniversity
MarkD.Partridge,OhioStateUniversity
JacquesPoot,UniversityofWaikato
AuraReggiani,UniversityofBologna
NewFrontiersinRegionalScience:AsianPerspectives
Thisseriesisaconstellationofworksbyscholarsinthefieldofregionalscienceand
inrelateddisciplinesspecificallyfocusingondynamisminAsia.
Asia is the most dynamic part of the world. Japan, Korea, Taiwan, and Singapore
experiencedrapidandmiracleeconomicgrowthinthe1970s.Malaysia,Indonesia,
and Thailand followed in the 1980s. China, India, and Vietnam are now rising
countries in Asia and are even leading the world economy. Due to their rapid
economic development and growth, Asian countries continue to face a variety of
urgentissuesincludingregionalandinstitutionalunbalancedgrowth,environmental
problems, poverty amidst prosperity, an ageing society, the collapse of the bubble
economy,anddeflation,amongothers.
Asian countries are diversified as they have their own cultural, historical, and
geographical as well as political conditions. Due to this fact, scholars specializing
in regional science as an inter- and multi-discipline have taken leading roles in
providingmitigatingpolicyproposalsbasedonrobustinterdisciplinaryanalysisof
multifacetedregionalissuesandsubjectsinAsia.Thisseriesnotonlywillpresent
unique research results from Asia that are unfamiliar in other parts of the world
because of language barriers, but also will publish advanced research results from
thoseregionsthathavefocusedonregionalandurbanissuesinAsiafromdifferent
perspectives.
The series aims to expand the frontiers of regional science through diffusion of
intrinsically developed and advanced modern regional science methodologies in
Asiaandotherareasoftheworld.Readerswillbeinspiredtorealizethatregional
and urban issues in the world are so vast that their established methodologies still
have space for development and refinement, and to understand the importance of
the interdisciplinary and multidisciplinary approach that is inherent in regional
scienceforanalyzingandresolvingurgentregionalandurbanissuesinAsia.
Topics under consideration in this series include the theory of social cost and
benefit analysis and criteria of public investments, socio-economic vulnerability
against disasters, food security and policy, agro-food systems in China, industrial
clusteringinAsia,comprehensivemanagementofwaterenvironmentandresources
inariverbasin,theinternationaltradeblocandfoodsecurity,migrationandlabor
marketinAsia,landpolicyandlocalpropertytax,InformationandCommunication
Technology planning, consumer “shop-around” movements, and regeneration of
downtowns,amongothers.
Moreinformationaboutthisseriesathttp://www.springer.com/series/13039
Tohru Naito • Woohyung Lee • Yasunori Ouchida
Editors
Applied Approaches
to Societal Institutions
and Economics
Essays in Honor of Moriki Hosoe
123
Editors
TohruNaito WoohyungLee
DoshishaUniversity KeimyungUniversity
Kyoto,Japan Daegu,Korea(Republicof)
YasunoriOuchida
DepartmentofEconomics
HiroshimaUniversity
Higashi-HiroshimaCity
Hiroshima,Japan
ISSN2199-5974 ISSN2199-5982 (electronic)
NewFrontiersinRegionalScience:AsianPerspectives
ISBN978-981-10-5662-8 ISBN978-981-10-5663-5 (eBook)
DOI10.1007/978-981-10-5663-5
LibraryofCongressControlNumber:2017951197
©SpringerNatureSingaporePteLtd.2017
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The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721,
Singapore
ToProfessorMorikiHosoe
Preface
Thisbookiswrittentocommemoratethestudies,theeducation,andthe70yearsof
ageofProfessorMorikiHosoe,whoisanemeritusprofessorinKyushuUniversity
and is a designated professor in Kumamoto Gakuen University. Since Professor
Hosoehasbeenalwaysinterestedintheapplicabilityofeconomictheorytoreality
and has proceeded to research many fields of economics and published many
books or papers on many kinds of applied economics, which include information
economics, law and economics, environmental economics, and regional science.
Therefore,hiscontributiontoappliedeconomicsisrespectfullyappreciated.
Professor Hosoe particularly has contributed to the development of applied
economics, established the Japan Association for Applied Economics (JAAE) in
2006,andbecamethefirstpresidentofJAAE.AlthoughtheWesternAssociationof
Economics was a local economics association in Kyushu Island, Japan, Professor
Hosoeambitiouslyconstructedanetworkwithmanyeconomicsresearchersbothin
Japan and abroad and brought up one of famous economics association in Japan.
Without the contribution of Professor Hosoe, the current Japan Association for
AppliedEconomicswouldnotexist.Moreover,ProfessorHosoecontributedtothe
Asian Law and Economics Association as president from 2007 to 2008, the Japan
SectionofRSAIasvicepresidentfrom2011to2013andaspresidentfrom2017,
andtheJapanLawandEconomicsAssociationaspresidentfrom2016to2017.
Although there is no doubt that Professor Hosoe is an excellent and powerful
researcherineconomics,heisalsoagoodeducator.ProfessorHosoehasworkedat
someuniversities,whichincludeKyushuUniversity,KumamotoGakuenUniversity,
and so on, for about 40 years, and produced a number of excellent economists.
Therefore,thisbookisalsoatestimonytoProfessorHosoe’scontributiontonotonly
research but also education because some contributors of this book are Professor
Hosoe’s students in the graduate school of economics in Kyushu University and
researcherswhohaveresearchexchangeswithProfessorHosoe.
This book focuses on many kinds of applied economics like game theory,
informationeconomics,lawandeconomics,environmentaleconomics,publiceco-
vii
viii Preface
nomics,industrialorganization,socialsecurity,sportseconomics,regionalscience,
andsoon.Thus,thisbookisveryvaluabletoresearchers,scholars,policymakers,
andgraduatestudentsinappliedeconomics.Essaycontributorsincludehisformer
graduate students and researchers with personal connection to Professor Hosoe in
appliedeconomics.Moreover,theotherpurposeofthisbookistocelebratehis70th
birthday and acknowledge him for developing applied economics as well as his
achievementineducationinsomeuniversities.
We are grateful that the Japan Section of RSAI and Springer Japan gave
us an opportunity to publish this book. Moreover, we have received some
financial supports from the Grants-in-Aid for Scientific Research (KAKENHI:
22730201, 26380350, 26285098, 26380466, 15K03453, 15K03749, 16K03719,
16K12374, 16K12998) and the National Research Foundation of Korea (NRF:
2014S1A3A2044643,2014S1A3A2044032).
Kyoto,Japan TohruNaito
Daegu,SouthKorea WoohyungLee
Hiroshima,Japan YasunoriOuchida
March2017
Contents
PartI NewMethodologyofGame,Contract,andLaw
1 IntrinsicMotivationandDynamicAgencyContract................... 3
IsaoMiuraandKeikiKumagae
2 ImpactofLowerInterestRateCeilingsontheLendingMarket...... 23
HaruhikoTsuzukiandYusukeMiyoshi
3 OwnershipStructure,TaxRegime,andDividendSmoothing......... 41
ShinyaShinozakiandKonariUchida
4 EconomicEvaluationofJapaneseAttorneyFees....................... 57
YasuhiroIkeda
5 FixedPaymentsinProductionContractsforPrivateLabels:
AnEconomicAnalysisoftheJapaneseSubcontractAct............... 71
TakeshiGotoandTatsuhikoNariu
6 Managers’WindowDressingandLiabilityforDamagestoa
StockSalesinManagementBuyouts..................................... 85
RyutaroNozaki
7 OptimalDefaultRuleforBreachofContract........................... 101
KazuhikoSakai
8 HowtoDeterminetheLendingLeveloftheBanktotheFirm? ...... 113
ShinyaShimoda
9 IncompleteInformationinRepeatedCoordinationGames ........... 121
EricRasmusen
PartII EconomicAnalysisofGovernmentandPublicSector
10 PublicDebt,BudgetDeficits,Fertility,andEndogenousGrowth..... 135
Jun-ichiMaeda
ix
x Contents
11 OptimalIncomeTaxStructurewithFavoritism ........................ 145
HidekiSato
12 RegionalAgglomerationandSocialSecurityPoliciesinOLG
Model ........................................................................ 151
TohruNaito
13 CanMigrationAffecttheDecisionofGovernmentalFiscal
Bailout?...................................................................... 169
WoohyungLee
14 DelegationofPolicyTasksfromPoliticiantotheBureaucrat ......... 183
MasayukiKanazaki
15 MeasurementofIdeologyBasedonPerCapitaVoteVersus
MoneyCountVoteinKorea............................................... 201
HangKeunRyu,EunjuChi,andHyeokYongKwon
PartIII AppliedApproachestoCurrentEconomicIssues
16 ExternalitiesofNetworkFormationandEconomicGrowth .......... 215
TomoyaSakagami,YasuhikoKato,HirokiInoue,andHirokiUnoki
17 EnvironmentalPolicyandtheExcessEntryTheorem ................. 227
HajimeSugeta
18 BilateralCooperationforTransboundaryPollutionProblems........ 243
ToshiyukiFujita
19 SocialCapital,ResourceBoom,andUnderdevelopmentTraps....... 253
NobuakiHoriandPesethSeng
20 Quality-ImprovingR&DandSemicollusiveProductionCartel
inDifferentiatedCournotDuopoly....................................... 271
YasunoriOuchida
21 Optimal Commodity Taxation with Tax Brackets Under
VerticalProductDifferentiation .......................................... 287
KiyoshiArakawa
22 RoleofPublicSupportinSportsFanFormationProcesses:
ApproachbyCulturalTransmissionModel............................. 303
HirofumiFukuyama
23 AComparisonofNationalandLocalAirportManagement .......... 319
AkioKawasaki
24 VotingforSecessionandSitingNuisanceFacilitiesinaFederation .. 333
ShigeharuSato
25 LaborStandardsandExport-PlatformFDIinUnionized
Oligopoly .................................................................... 349
Ki-DongLee