Koichi Hamada
Office Hours:
Room 18B, 432-3613
(Appointment preferred)
Economics
429a/802a
ECONOMIC DEVELOPMENT OF
JAPAN
Fall
2004
T/Th 1:00-2:15
PM
Luce Hall, 34 Hillhouse,
Room 302
The
purposes of this course are
1)
to orient students with the
basic features of the Japanese economic development and its current state,
and
2)
to provide them with the
tools to compare different economic institutions among
countries.
The
textbook used in this course is:
David Flath, The Japanese
Economy (DF hereafter), Oxford University Press, 2000.
I
also strongly recommend as a sub-textbook another book that is more
comprehensive but a little dated:
Takatoshi Ito, The
Japanese Economy (TI hereafter), MIT Press, 1992.
There
will be a mid-term examination (approx. 40 points) scheduled for October 28, and
a final short paper (around 3,000 words, approx. 30 points). Attendance, participation in class
discussions, and the presentation of paper materials will count 30
points.
Economics
429a/802a
ECONOMIC DEVELOPMENT OF
JAPAN
Fall
2003
DF is always required. Other required readings are marked with an asterisk (*).
All readings are on closed reserve at CCL.
I.
Introduction: The Lost Decade of Japan Since 1990
(understood
from my recent experience at the Japanese government) (Weeks
1 and 2)
*Koichi
Hamada, “Policy Making in Deflationary Japan,” The Japanese Economic
Review, Vol. 55, 2004, forthcoming.
*Fumio Hayashi and Ed
Prescott, "The 1990s in Japan: A
Lost Decade," Review of Economic Dynamics, 2002,
pp.309-27.
Kuttner, Kenneth and Adam
Posen (2001), “The Great Recession: Lessons for Macroeconomic Policy from
Japan,” Brookings Papers on Economic Activity, Issue 2, pp.
93-160.
Krugman, P. (1999), “It’s
Baaack: Japan’s Slump and the Return of the Liquidity Trap,” Brookings Papers
on Economic Activity, pp. 137-205.
Ed
Lincoln, Arthritic Japan: The Slow Pace of Economic Reform, Washington,
D.C.: The Brookings Institution, 2002.
Chapters 3 & 4.
Optional reading:
Craig Freedman, editor, Why Did Japan Stumble?, Chapters
1-3.
Koichi Hamada, “Can the Japanese Change? Organizational, Psychological
and
Evolutionary Perspectives,”
Chapter 6 in C. Freedman, editor, Why Did Japan
Stumble?
T. Watsuji, A Climate: A
Philosophical Study, Tokyo: Japanese government,
1961.
II. Historical Background
of the Japanese Economy (Week
3)
DF,
Chapters 2-4.
TI,
Chapter 2.
M. Morishima, Why has
Japan Succeeded? Western Technology and the Japanese Ethos, Cambridge
University Press, 1982, chapters 1-2.
Optional
readings:
Ulrike Schaede, “Forwards and Futures in Tokugawa-Period Japan,” in
Journal of
Banking and
Finance 13
(1989), pp. 487-513.
Historian’s Reappraisal,”
The Economic Studies Quarterly, Vol. 38, No. 4, Dec.
1987.
III.
Economic Growth and Business
Cycles
(Week 4)
E.
Hadley and P. Kuwayama, Memoir of a Trustbuster: A Lifelong Adventure with
Japan, Honolulu: University of Hawaii Press, 2003.
TI,
Chapters 3 and 4.
T.
Nakamura, The Postwar Japanese Economy, University of Tokyo Press, 1980.
Y.
Kosai, Era of High Speed Growth, University of Tokyo Press, 1986.
Chapters 1-3.
Cargill, T.F., M.M.
Hutchison, and T. Ito, The Political Economy of Japanese Monetary Policy,
The MIT Press, 1997, Chapter 5.
Fumio Hayashi,
Understanding Saving, MIT Press, 1997. Chapters to be
assigned.
Optional
readings:
Koichi Hamada and Munehisa Kasuya, “The Reconstruction and Stabilization
of
the Postwar Japanese
Economy: Possible Lessons for Eastern Europe?” in
Postwar Economic
Reconstruction & Lesson for the East, R. Dornbusch, editor, MIT
1993.
Analysis of Motives for
Household Saving in Japan,” The Economic Journal 107, May 1997,
537-552.
IV. Financial
Markets
(Week 5)
TI,
Chapter 5.
DF,
Chapter 13.
*Hoshi T., and A. Kashyap, Corporate
Financing and Governance in Japan: The Road to the Future, The MIT Press,
2001, Chapters 4 and 6-9.
Optional
reading:
Iwao
Nakatani, “The Economic Role of Financial Corporate Grouping,” in The
Economic Analysis of the
Japanese Firm, Elsevier Science
Publishers, 1984.
V. Monetary
and Fiscal Policy (Week
6)
TI,
Chapter 5.
*Cargill, Hutchison, and
Ito, The Political Economy of Japanese Monetary Policy, MIT Press,
1997. Chapter 3,
8.
Bernanke, Ben (2000),
“Japanese Monetary Policy: A Case of Self-Induced Paralysis?” in R. Mikitani and
A. S. Posen eds., Japan’s Financial Crisis and Its Parallels to U.S.
Experience, Washington D.C.: Institute for International Economies,
pp.149-166.
TI,
Chapter 6.
DF,
Chapter 10.
VI.
Firms (Week
7)
TI,
Chapter 7.
DF,
Chapters 9, 12, 14, and 16.
M.
Aoki, Information Incentives and Bargaining in the Japanese Economy,
Cambridge, 1998. Chapters
1-3.
J.C. Abegglen & G.
Stalk, Jr., KAISHA: The Japanese Corporation, Basic Books, 1985. Chapters
3 & 4.
Ramseyer, M., & F. M.
Rosenbluth, Japan’s Political Marketplace, Harvard, 1997. Chapter
1.
Ramseyer, M. and M.
Nakazato, Japanese Law, An Economic Approach, University of Chicago
Press, 1999.
C. A. Johnson, MITI and
the Japanese Miracle: The Growth of Industrial Policy, 1925-75, Stanford
University Press, 1982. Chapters 2 & 7.
VII. Labor Market (Week
8)
TI,
Chapter 8.
DF,
Chapter 15.
K.
Koike, The Economics of Work in Japan, 1995, Chapters 2, 3, and
14.
Optional
readings:
Tsuneo Ishikawa and Kazuo
Ueda, “The Bonus Payment System and Japanese Personal Savings,” in The
Economic Analysis of the Japanese Firm, M. Aoki editor, Elsevier Science
Publishers.
Kazuo Koike, “Skill
Formation Systems in the U.S. and Japan: A Comparative Study,” in M. Aoki, ed.,
The Economic Analysis of the Japanese Firm, Elsevier Science Publishers,
1984.
Sumiko Iwao, The Japanese
Woman, The Free Press, NY, 1993.
Yuji Genda, “Japanese
Labour: Rapidly Changing Markets in a Stable Institutional Setting” (paper for
Oxford Review of Economic Policy), 2000 draft.
Mid-term examination
scheduled on 10/28
DF,
Chapter 9, 13
IX. Japan, Asia
and the International Community (Week 10)
Optional
reading:
Ryutaro Komiya and Kozo
Yamamoto, “Japan: The Officer in Charge of Economic Affairs,” History of
Political Economy 13:3, 1981.
Student presentations
(Weeks 11-13 or
TBA)