Economics 970

The Political Economy of Japan

[Return to EC970 Index]
TTH 6:00-7:30 Robinson 207


Jeffrey R. Bernstein, Ph.D. Candidate in Business Economics
Office Hours: By appointment. For more detail, see "Instructor-Student Communication" below.
Telephone: 495-6908 (O), 547-1125 (H). Call anytime except between 10 p.m. and 7 a.m.

Course Description

In terms of economic growth, Japan has been one of the most, if not the most, remarkable success stories of the past century. This course provides a survey of Japanese economic develop ment from the mid-nineteenth century to the present, with a focus on the postwar period. It covers a broad range of issues, including those related to labor, industrial organiza tion, trade, finance, and the theory of the firm. Thus, in addition to providing information on the Japanese economy and its historical de velop ment, the course offers exposure to a variety of fields within economics.

Since it is frequently asserted that Japan operates according to fundamentally different economic principles from those prevailing in the United States or other Western nations, one further aim of the course is to consider the extent to which conventional economic theory can ex plain the methods of economic organization and policymaking that underlie Japan's extra ordinary economic performance. Accordingly, the course readings include not only works by economists but also material by scholars from other disciplines (e.g., political science, sociology, and history).


The course requirements include classroom participation, readings, and written work. Classroom participation is important because much of the learning will take place through group discussion. Hence, it is essential that students attend class regularly and do the required readings for each session before coming to class. In terms of written work, the course will involve a number of papers, including several response papers (2-3 pages) and discussion papers (4-6 pages), an empirical exercise (5 pages), and a final research paper (12-15 pages). Information on specific requirements is given below.

Classroom Participation

1. Attend! In a discussion class with a small number of students, the presence of each and every student is crucial.

2. Come to class prepared (i.e., having done the required readings) and contribute to the discussion. I will provide a list of questions to provide some guidance in doing the readings for the next session. To facilitate discussion, I will feel free to "cold call" students throughout the class. Do not feel that you need to understand all of the material in the readings or that you must contribute a brilliant insight with each comment. Indeed, sometimes a clarifying question can be very useful for the rest of the class.

3. Give a brief (10-15 min.) presentation on the subject of your final paper.


1. The readings for each session are listed on the syllabus. Occasionally I may decide to change certain readings for a particular session, but I will always try to provide a week's notice prior to any such modification.

2. There are two types of readings: required and optional. Optional readings are marked with an asterisk (*); they typically provide either background information or additional detail about a particular topic. You are expected to do the required readings but not the optional ones.

3. Of the required readings, most are included in a reading packet that is available for sale at the Coop. Some readings will be distributed separately; they are marked with the "Ý" symbol. Another set of readings will be placed on reserve and are marked with the "§" symbol. I re commend that you purchase the reading packet, as it can be very time-consuming to track down the individual readings. (A copy of the reading packet will not be placed on reserve.)

4. Some required readings which do not appear in the packet come from two textbooks:

These two books will be available for purchase at the Coop. However, copies will also be placed on reserve in Lamont.


Writing Assignments

1. Write 4 response papers. The primary purpose of these short (2-3 page) papers is to assist you in preparing for the class discussion. These assignments typically call for a blend of summary and analysis.

2. Write 2 discussion papers. These somewhat longer (4-6 page) papers are intended to give you practice in formulating arguments and defending them using evidence from the readings.

3. Complete a 5-page empirical exercise. This exercise has two main goals: first, to give you more familiarity in dealing with data and econometrics, and second, to increase your understanding of the empirical literature on economic growth.

4. Write a 12-15 page research paper. This research paper provides you with an opportunity to do some independent research on a topic of your own choosing. To make it easier for those students with less experience in writing long papers, there will be several intermediate steps along the way: submit a 2-page proposal (by March 6); schedule a conference with me about the topic of the paper (during the week of March 10); write a draft of the long paper (by April 17); complete the paper (by May 9).

Grading and Policies

Weighting Scheme for Grades:

Class Participation

Attendance and General Participation 20
Presentation of Final Paper 5%

Written Work

Response Papers (4 @ 4% each) 16%
Discussion Papers (2 @ 8% each) 16%
Empirical Exercise 8%
Final Paper 35%

Total 100%

Late Papers:

Papers are due at the beginning of the class session except where otherwise noted. Late response papers will not be accepted. Since these papers are meant to assist in class preparation, they obviously have less meaning after the class. There is some flexibility in that you can skip one response paper of your choosing during the semester.

For other assignments, late papers will be accepted but will be penalized as follows:

Since you can almost always do better work if you spend additional time on an assignment, it would be unfair to use the same scale to evaluate both late papers and those handed in on time.

If you do not hand in your paper in class, you will have to track me down and hand-deliver the paper to me (since I want to avoid any problems with papers disappearing from my mailbox).

Of course, I am going to be reasonable about this. If you have a valid reason (e.g., serious illness, family emergency, etc.) for not handing in a paper on time, I will not impose a penalty. Also, if you are worried about not being able to meet a particular deadline for some reason, talk to me in advance, and we can try to work out some alternative arrangements.

Instructor-Student Communication:

More generally, I urge you to talk to me about any problems or concerns you have with the class, whether it is something particular to your circumstances (e.g., difficulty finding a paper topic) or a more general issue (e.g., about how the class is run). I will schedule one-on-one appointments with each of you sometime during the week of March 10 to talk about your paper topic and to see how things are going, but you should certainly not feel that this is the only time you can speak with me.

Class Schedule and Reading Assignments


Introduction and General Themes

Class 1. Introduction and Overview
Thursday, February 6, 1997

ÝJeffrey Bernstein, "Japanese Capitalism," HBS Case #N1-796-084 (1996), pp. 1-31.

ÝClyde Prestowitz, "Introduction," in Eisuke Sakakibara, Beyond Capitalism : The Japanese Model of Market Economics (Washington: Economic Strategy Institute, 1993), pp. vii-xxi.

Ý"Is Japanese Capitalism 'Different'? Does It Matter?", a debate between Laura Tyson and Gary Saxonhouse, Tokyo Business Today, November 1992, pp. 20-24.


Class 2. The Role of Culture
Tuesday, February 11, 1997

Robert J. Smith, "The Cultural Context of the Japanese Political Economy," PEJ, Vol. 3 (1992), pp. 13-31.

§William K. Tabb, The Postwar Japanese System: Cultural Economy and Economic Transformation (New York: Oxford University Press, 1995), pp. 11-34.

Ronald Dore, "Goodwill and the Spirit of Market Capitalism," in Taking Japan Seriously: A Confucian Perspective on Leading Economic Issues (Stanford: Stanford University Press, 1987), pp. 169-172.

ÝRoderick MacFarquhar, "The Post-Confucian Challenge," The Economist, February 9, 1980, pp. 67-72.

Ý"The Man in the Baghdad Café: Which 'Civilization' You Belong to Matters Less Than You Might Think," The Economist, November 9, 1996, pp. 23-26.

*Gary Becker and George Stigler, "De Gustibus Est Non Disputandum," American Economic Review (March 1977), pp. 76-90.

*Masahiko Aoki, "Culture and Economic Rationality," in Information, Incentives and Bargaining in the Japanese Economy (Cambridge: Cambridge University Press, 1988), pp. 298-313.

Response Paper #1 Due


Prewar Japanese Economy

Class 3. Important Preconditions: The Tokugawa Period
Thursday, February 13, 1997

Yasukichi Yasuba, "The Tokugawa Legacy: A Survey," Economic Studies Quarterly, 38 (1987), pp. 289-308.

Tessa-Morris Suzuki, The Technological Transformation of Japan: From the Seventeenth to the Twenty-first Century (Cambridge: Cambridge University Press, 1994), pp. 13-54.

§Christopher Howe, The Origins of Japanese Trade Supremacy: Development and Technology in Asia from 1540 to the Pacific War (Chicago: University of Chicago Press, 1996), pp. 22-41, 49-71.

*Chie Nakane and Shinzaburo Oishi, eds., Tokugawa Japan: The Social and Economic Antecedents of Modern Japan (Tokyo: University of Tokyo Press, 1990).

*E. Sydney Crawcour, "The Tokugawa Heritage," in William Lockwood, ed., The State and Economic Enterprise in Japan (Princeton: Princeton University Press, 1965), pp. 17-44.


Class 4. The Transition to Modern Growth: Early Meiji
Tuesday, February 18, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 7-39.

J. Richard Huber, "The Effect on Prices of Japan's Entry into World Commerce after 1858," Journal of Political Economy (1971), pp. 614-628.

Henry Rosovsky, "Japan's Transition to Modern Economic Growth," in Henry Rosovsky, ed., Industrialization in Two Systems: Essays in Honor of Alexander Gerschenkron (New York: John Wiley & Sons, 1966), pp. 91-139.

Penelope Francks, Japanese Economic Development: Theory and Practice (London: Routledge, 1992), pp. 19-52.

*D. Eleanor Westney, Imitation and Innovation: The Transfer of Western Organizational Patterns to Meiji Japan (Cambridge: Harvard University Press, 1987).

*T. C. Smith, Political Change and Industrial Development in Japan: Government Enterprise 1868-1880 (Stanford: Stanford University Press, 1955).

Response Paper #2 Due


Class 5. Prewar Japanese Economy: Labor and Management
Thursday, February 20, 1997

Andrew Gordon, The Evolution of Labor Relations in Japan : Heavy Industry, 1853-1955 (Cambridge: Harvard University Press, 1985), pp. 17-50.

Penelope Francks, Japanese Economic Development: Theory and Practice (London: Routledge, 1992), pp. 197-209.

Keiichiro Nakagawa, "Business Management in Japan&emdash;A Comparative Historical Study," Industrial and Corporate Change (1993), pp. 25-39 (39-43 optional).

Tsunehiko Yui, "Development, Organization, and International Competitiveness of Industrial Enterprises in Japan, 1880-1915," Business and Economic History (1988), pp. 31-48.

*Hidemasa Morikawa, "The Increasing Power of Salaried Mangers in Japan's Large Corporations," in William Wray, ed., Managing Industrial Enterprise: Cases from Japan's Prewar Experience (Cambridge: Harvard University Press, 1989), pp. 27-51.


Class 6. Prewar Japan: Finance, Technology and Trade
Tuesday, February 25, 1997


Hidemasa Morikawa, Zaibatsu: The Rise and Fall of Family Enterprise Groups in Japan (Tokyo: University of Tokyo Press, 1992), pp. xv-25.

Penelope Francks, Japanese Economic Development: Theory and Practice (London: Routledge, 1992), pp. 226-243.

*Kozo Yamamura, "Japan, 1868-1930: A Revised View," in R. Cameron, ed., Banking and Economic Development (New York: Oxford University Press, 1972), pp. 168-198.

Technology and Trade

Penelope Francks, Japanese Economic Development: Theory and Practice (London: Routledge, 1992), 173-196.

Kozo Yamamura, "Success Illgotten? The Role of Meiji Militarism in Japan's Technological Progress," Journal of Economic History (1977), pp. 113-135.

*Ippei Yamazawa, Economic Development and International Trade: The Japanese Model (Honolulu: East-West Center, 1990), pp. 141-164.

Response Paper #3 Due


Class 7. The Wartime Japanese Economy and Postwar Reforms
Thursday, February 27, 1997: Class in Science Center 316!!

ÝNoribumi Tsukada and Hiroshi Fukunaga, "In Japan, The War is Over, but the 1940 System Lives On", in Tokyo Business Today, September 1995, pp. 4-7. Also, "Time to Grow Beyond the 1940 System," pp. 9-12.

Tetsuji Okazaki, "The Japanese Firm under the Wartime Planned Economy," in Masahiko Aoki and Ronald Dore, eds., The Japanese Firm (New York: Oxford University Press, 1994), pp. 350-378.

Shigeto Tsuru, Japan's Capitalism: Creative Defeat and Beyond (Cambridge: Cambridge University Press, 1993), pp. 7-59.

*Jun Sakudo and Takao Shiba, eds., World War II and the Transformation of Business Systems, vol. 20 of the International Conference on Business History (Tokyo: University of Tokyo Press, 1993), pp. 1-83.

*Juro Teranishi and Yutaka Kosai, eds., The Japanese Experience of Economic Reforms (New York: St. Martin's Press, 1993).


Interlude on Economic Growth

Class 8. Theories of Economic Growth
Tuesday, March 4, 1997

growth theory: neoclassical and endogenous growth

N. Gregory Mankiw, Macroeconomics, Ch. 4 (or the equivalent in Barro's textbook).

Howard Pack, "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives (Winter 1994), pp. 55-72.

Paul Krugman, "The Myth of Asia's Miracle," reprinted in Pop Internationalism (Cambridge: MIT Press, 1996), pp. 167-187.

economic backwardness and social capabilities

Chalmers Johnson, "Social Values and the Theory of Late Economic Development in East Asia" in Who Governs? The Rise of the Developmental State (New York: W.. W. Norton & Company, 1995), pp. 38-50.

*Alexander Gerschenkron, Economic Backwardness in Historical Perspective (Cambridge: Harvard University Press, 1962), pp. 5-30.

*Moses Abramowitz, "Catching Up, Forging Ahead, and Falling Behind," in Thinking About Growth (Cambridge: Cambridge University Press, 1989), pp. 220-242.


Class 9. Application to Japanese Economic Growth
Thursday, March 6, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 43-76.

Martin Brofenbrenner and Yasukichi Yasuba, "Economic Welfare," in PEJ, Vol. 1 (1987), pp. 93-136.

*Hugh Patrick and Henry Rosovsky, "Japanese Economic Performance: An Overview," in Hugh Patrick and Henry Rosovsky, ed., Asia's New Giant (Washington: Brookings Institution, 1976), pp. 1-61.

*Edward Denison and William Chung, "Economic Growth and Its Sources," in Hugh Patrick and Henry Rosovsky, ed., Asia's New Giant (Washington: Brookings Institution, 1976), pp. 63-151.

Research Paper Proposal Due


The Postwar Japanese Economy

Class 10. Labor Markets
Tuesday, March 11, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 209-257.

Masanori Hashimoto and John Raisian, "Employment, Tenure and Earnings Profiles in Japan and the United States," American Economic Review (1985), pp. 721-735.

Kazuo Koike, "Human Resource Development and Labor-Management Relations," in PEJ, Volume 1 (Stanford: Stanford University Press, 1987), pp. 289-330.

*Mary C. Brinton, Women and the Economic Miracle: Gender and Work in Postwar Japan (Berkeley: University of California Press, 1993), pp. 24-70.

*Masahiko Aoki, "The Ranking Hierarchy of the J-Firm as Incentive Scheme," in Information, Incentives and Bargaining in the Japanese Economy (Cambridge: Cambridge University Press, 1988), pp. 49-98.

Empirical Exercise Due


Class 11. Saving and Investment Behavior
Thursday, March 13, 1997

Takatoshi Ito, The Japanese Economy , pp. 147-176, 259-287.

Charles Horioka, "Why is the Japanese Savings Rate so High? A Literature Survey," Journal of the Japanese and International Economies (1990), pp. 49-92.

*Kazuo Sato, "Saving and Investment," in PEJ, Vol. 1 (1987), p. 137-185.

*Yukio Noguchi, "Public Finance," in PEJ, Vol. 1 (1987), pp. 186-222.


Class 12. Financial Markets and Corporate Governance
Tuesday, March 18, 1997

Takatoshi Ito, The Japanese Economy, pp. 103-125.

Koichi Hamada and Akiyoshi Horiuchi, "The Political Economy of the Financial Market," in PEJ, Vol. 1 (1987), pp. 223-260.

Paul Sheard, "The Main Bank System and Corporate Monitoring and Control in Japan," Journal of Economic Behavior and Organization, 11 (1989), pp. 399-422.

ÝStephen Prowse, "Corporate Finance in International Perspective: Legal and Regulatory Influences on Financial System Development," Economic Review, Federal Reserve Bank of Texas, Third Quarter 1996, pp. 2-13.

*Jeffrey Frankel, "Japanese Finance in the 1980s: A Survey," in Paul Krugman, ed., Trade with Japan: Has the Door Opened Wider? (Chicago: University of Chicago Press, 1991), pp. 226-270.


Class 13. The Theory of the Japanese Firm (J-Firm vs. A-Firm)
Thursday, March 20, 1997

Masahiko Aoki, "Toward an Economic Model of the Japanese Firm," Journal of Economic Literature (1990), pp. 1-27.

Alan Blinder, "Profit Maximization and International Competition," in Richard O'Brien, ed., Finance and the International Economy: 5&emdash;The AMEX Bank Review Prize Essays (New York: Oxford University Press, 1991), pp. 37-50.

Hiroyuki Odagiri, Growth Through Competition, Competition Through Growth (New York: Oxford University Press, 1992), pp. 1-20.

§Paul Sheard, "Long-termism and the Japanese Firm," in Mitsuaki Okabe, ed., The Structure of the Japanese Economy (New York: St. Martin's Press, 1995), pp. 25-52.

*Masahiko Aoki, "The Japanese Firm in Transition," in PEJ, Vol. 1 (1987), pp. 263-288.

*James Abegglen and George Stalk, Kaisha, The Japanese Corporation (New York: Basic Books, 1986).

Discussion Paper #1 Due


Class 14. Technology
Tuesday, April 1, 1997

Merton J. Peck and Shuji Tamura, "Technology," in Hugh Patrick and Henry Rosovsky, eds., Asia's New Giant: How the Japanese Economy Works (Washington: Brookings Institution, 1976), pp. 525-585.

Daniel Okimoto and Gary Saxonhouse, "Technology and the Future of the Economy," in PEJ, Vol. 1 (1987), pp. 385-419.

*Hiroyuki Odagiri and Akira Goto, "The Japanese System of Innovation: Past, Present, and Future," in Richard R. Nelson, ed., National Innovation Systems: A Comparative Analysis (New York: Oxford University Press, 1993), pp. 76-114.

*Tessa Morris-Suzuki, The Technological Transformation of Japan: From the Seventeenth to the Twenty-First Century (Cambridge: Cambridge University Press, 161-202.


Class 15. Industrial Organization: Corporate Groups and Competition
Thursday, April 3, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 177-196.

Richard Caves and Masu Uekusa, "Industrial Organization," in Hugh Patrick and Henry Rosovsky, eds., Asia's New Giant (Washington: Brookings Institution, 1976), pp. 459-523.

Hiroyuki Odagiri, Growth Through Competition, Competition Through Growth (New York: Oxford University Press, 1994), pp. 201-215, 228-229.

ÝRobert Cutts, "Capitalism in Japan: Cartels and Keiretsu," Harvard Business Review (July-August 1992), pp. 48-55.

*Masu Uekusa, "Industrial Organization: 1970s to the Present," PEJ, vol. 1 (1987), pp. 469-515.

*David Weinstein and Yishay Yafeh, "Japanese Corporate Groups: Collusive or Competitive? An Empirical Investigation of Keiretsu Behavior," HIER Discussion Paper #1623.

Response Paper #4


Class 16. Industrial Organization: Small Firms, Subcontracting, Sogo Shosha
Tuesday, April 8, 1997

Hugh Patrick and Thomas Rohlen, "Small-Scale Family Enterprises," PEJ, vol. 1 (1987), pp. 331-384.

Masahiko Aoki, Information, Incentives and Bargaining in the Japanese Economy (Cambridge: Cambridge University Press, 1988), pp. 208-223.

Paul Sheard, "The Japanese General Trading Company as an Aspect of Interfirm Risk-Sharing," Journal of the Japanese and International Economies, 3 (1989), pp. 308-322.

*Yoshiro Miwa, "The Image and Reality of Small Business and Small Business Policies," in Firms and Industrial Organization in Japan (New York: New York University Press, 1996), pp. 41-57.

*Kozo Yamamura, "General Trading Companies in Japan: Their Origins and Growth," in Hugh Patrick, ed., Japanese Industrialization and its Social Consequences (Berkeley, University of California, 1976).


Class 17. Trade
Thursday, April 10, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 289-309.

Robert Z. Lawrence, "Japan's Different Trade Regime: An Analysis with Particular Ref erence to Keiretsu," Journal of Economic Perspectives (Summer 1993), pp. 3-19.

Gary R. Saxonhouse, "What Does Japanese Trade Structure Tell Us About Japanese Trade Policy?," Journal of Economic Perspectives (Summer 1993), pp. 21-43.

Edward Lincoln, "Intra-industry Trade," in Japan's Unequal Trade (Washington: Brookings Institution, 1990), pp. 39-60.

*Ryutaro Komiya and Motoshige Itoh, "Japan's International Trade and Trade Policy, 1955-1984," in PEJ, Volume 2 (Stanford: Stanford University Press, 1988), pp. 173-224.

*C. Fred Bergsten and Marcus Noland, Reconcilable Differences? United States-Japan Economic Conflict (Washington: Institute for International Economics, 1993).

*Chalmers Johnson, "Trade, Revisionism, and the Future of Japanese-American Relations" in Who Governs? The Rise of the Developmental State (New York: W.. W. Norton & Company, 1995), pp. 69-95.

Response Paper #5 Due


Class 18. Foreign Direct Investment
Tuesday, April 15, 1997

Richard Caves, "Japanese Investment in the United States: Lessons for the Economic Analysis of Foreign Investment," paper prepared for a symposium for The World Economy (1992), pp. 1-26.

David Weinstein, "Structural Impediments to Investment in Japan: What Have We Learned in the Last 450 Years?," paper prepared for Wharton Conference (1994), pp. 1-51.

*Kozo Yamamura, ed., Japanese Direct Investment in the United States: Should We Be Concerned? (Seattle: Society of Japanese Studies, 1989), pp. 5-27.

*Mark Mason, American Multinationals in Japan: The Political Economy of Japanese Capital Controls 1899-1980 (Cambridge: Harvard University Press, 1992).

*Dennis Encarnation, Rivals Beyond Trade: America Versus Japan in Global Competition (Ithaca: Cornell University Press, 1992).


Class 19. Sectoral Case Study: Distribution
Thursday, April 17, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 385-406.

§Thomas McCraw and Patricia O'Brien, "Production and Distribution," in Thomas McCraw, ed., America vs. Japan (Boston: HBS Press, 1986), pp. 77-79 and 100-116.

David Flath, "Why are There So Many Small Stores in Japan?," Japan and the World Economy (1990), pp. 365-386.

Ý*Jeffrey Bernstein, "7-Eleven in America and Japan," HBS Case #N9-797-030 (1996).

*Motoshige Itoh, "The Japanese Distribution System and Access to the Japanese Market," in Paul Krugman, ed., Trade with Japan: Has the Door Opened Wider? (Chicago: University of Chicago Press, 1991), pp. 175-187.

Draft of Research Paper Due


Class 20. Industrial Policy
Tuesday, April 22, 1997

Takatoshi Ito, The Japanese Economy (Cambridge: MIT Press, 1992), pp. 196-205.

ÝPhilip H. Tresize, "Industrial Policy is Not the Major Reason for Japan's Success," Brookings Review (Spring 1983), pp. 13-18.

Ryutaro Komiya, "Introduction," in Ryutaro Komiya et al., eds., Industrial Policy in Japan (San Diego: Academic Press, 1988), pp. 1-22 (plus as much as you can).

Giovanni Dosi, Laura D'Andrea Tyson, and John Zysman, "Trade, Technologies, and Development: A Framework for Discussing Japan," in Politics & Productivity: The Real Story of Why Japan Works (New York: HarperCollins, 1989), pp. 3-38.

Richard Beason and David Weinstein, "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," HIER discussion paper (1993), pp. 1-24.

*Chalmers Johnson, MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975 (Stanford: Stanford University Press, 1982), pp. 3-34.

*George C. Eads and Kozo Yamamura, "The Future of Industrial Policy," in PEJ, Vol. 1 (1987), pp. 423-468.

*Merton J. Peck, Richard C. Levin, and Akira Goto, "Picking Losers: Public Policy Toward Declining Industries in Japan," in John Shoven, ed., Government Policy Towards Industry in the United States and Japan (Cambridge: Cambridge University Press, 1988), pp. 195-239.

*Hong Tan and Haruo Shimada, eds., Troubled Industries in the United States and Japan (New York: St. Martin's Press, 1994).



Class 21. The "Japanese Model": Application to Eastern Europe
Thursday, April 24, 1997

Alan Blinder, "Should the Former Socialist Economies Look East or West for a Model?," paper presented to the Tenth World Congress of the International Economic Association in Moscow (August 1992), pp. 1-32.

Jeffrey Sachs, "Reforms in Eastern Europe and the Former Soviet Union in Light of the East Asian Experience," Journal of the Japanese and International Economies, 9 (1995), pp. 454-485.

ÝRobert Neff, "Japanese Fusion: Business Thrives Under the State's Protective Wing," Business Week, special issue on 21st-Century Capitalism, January 24, 1995, pp. 32-34.

*David Williams, Japan: Beyond the End of History (London: Routledge, 1994), pp. 157-170.

Discussion Paper #2


Class 22. Whither Japan? The Bubble and Thereafter
Tuesday, April 29, 1997

Readings to be distributed later


Student Presentations


Class 23. Student Presentations
Thursday, May 1, 1997

Student Presentations

Research Paper due before 5 P.M. by Friday, May 9, 1997



Course Outline


Class 1 Thur., Feb. 6 Introduction and Overview

Class 2 Tues., Feb. 11 The Role of Culture Response Paper #1



Class 3 Thur., Feb. 13 Tokugawa Japan

Class 4 Tues., Feb. 18 Early Meiji Japan Response Paper #2

Class 5 Thur., Feb. 20 Prewar Japan: Labor and Management

Class 6 Tues., Feb. 25 Prewar Japan: Finance, Tech., Trade Response Paper #3

Class 7 Thur., Feb. 27 Wartime Japan and Postwar Reforms



Class 8 Tues., March 4 Theories of Economic Growth

Class 9 Thur., March 6 Application to Japanese Growth Research proposal



Class 10 Tues., March 11 Labor Markets Empirical Exercise

Class 11 Thur., March 13 Saving and Investment Behavior

Class 12 Tues., March 18 Financial Mkts. and Corp. Governance

Class 13 Thur., March 20 Theory of the Japanese Firm Discussion Paper #1



Class 14 Tues., April 1 Technology

Class 15 Thur., April 3 IO: Corporate Groups and Competition Response Paper #4

Class 16 Tues., April 8 IO: Small Firms and Subcontracting

Class 17 Thur., April 10 Trade Response Paper #5

Class 18 Tues., April 15 Foreign Direct Investment

Class 19 Thur., April 17 Sectoral Case Study: Distribution Draft of Research Paper

Class 20 Tues., April 22 Industrial Policy

Class 21 Thur., April 24 Japanese Model in Eastern Europe Discussion Paper #2



Class 22 Tues., April 29 Whither Japan? After the Bubble Presentations

Class 23 Thur., May 1 Student Presentations Presentations



Friday, May 9 Research Paper Due

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