大阪府の北部を地盤とする池田銀行（大阪府池田市）と南部を地盤とする泉州銀行（同岸和田市）は21日、経営統合を検討していることを明らかにした。年内にも共同で持ち株会社を設立し、両行を傘下に入れた上で合併する方針。早期の基本合意を目指す。
池田と泉州の両地銀は、経営統合により拠点網を大阪府全域に拡大することで、融資競争が激化する同地域で生き残りを図る。関西地区は大手行のほか有力地銀による府県境を越えた出店競争が起きており、地域金融機関の収益環境は厳しさを増している。このため、今回の経営統合を機に関西での地銀再編が一気に加速する可能性もある。統合後の預金残高は約4兆140億円（2007年12月末時点）で、関西地区の地銀では京都銀行に次ぐ規模に浮上する。
2月21日9時1分配信 時事通信
大阪府北部を地盤とする池田銀行（大阪府池田市）と同府南部を地盤とする泉州銀行（同岸和田市）の２地方銀行が経営統合を検討していることが２１日、分かった。来春にも持ち株会社を設立して統合する方針で、今週中にも発表する。
統合すれば、総資産は関西の地銀で京都銀行に次ぐ２位の規模となる。関西では地銀同士の競争が激化、将来的に大正銀行（大阪市）が合流する公算も大きく、新たな地銀再編の呼び水となる可能性もある。
池田、泉州は来春にも持ち株会社を設立して両行が傘下に入る方向で検討している。池田は同府北部から阪神間、泉州は同府南部が営業基盤となっており、店舗などの重複が少なく、統合効果が大きいと判断した。総資産（０７年９月末）で、りそなグループの近畿大阪銀行、三井住友グループの関西アーバン銀行を抜き、同府内で最大の地銀になる。 関西では企業向け融資が伸び悩んでおり、近県の地銀が中小企業の多い同府内、阪神間に進出。地銀同士の貸し出し競争が激化している。池田と泉州は、統合で総合力の強化を目指す。 池田は０７年１２月末時点で５４７億円の有価証券含み損を処理するため、今年３月に三菱東京ＵＦＪ銀行を引き受け先とする３００億円規模の増資を実施する計画。泉州は三菱東京ＵＦＪ銀が６７．８％を出資している。池田、泉州の統合で三菱ＵＦＪフィナンシャル・グループの持ち株比率は４０％前後になるが、売却などで２０％まで引き下げ、三菱東京ＵＦＪ銀が１４．９％、その他関連会社が５．１％とし、経営の独立性は維持する。一方、大正も三菱東京ＵＦＪ銀が筆頭株主となっている。 関西の地銀の再編は、０４年の関西銀行と関西さわやか銀行の統合で関西アーバン銀行が誕生して以来。全国的には、０７年４月に福岡銀行と熊本ファミリー銀行がふくおかフィナンシャルグループを設立。同１０月には親和銀行が統合し、総資産で国内トップの地銀が誕生している。
2月21日11時35分配信 毎日新聞
これは興味深い。銀行の再編は、大手行から地銀へと広がっているようである。関西の景気動向は決してよくない中、関西地銀は融資競争の激化に見舞われているようである。泉州銀は泉南地区に強いが、泉州には他に和歌山銀との合併後の紀陽銀もある。紀陽銀の動向も気になるところである。
とにかく、両行の動きにしばらく目が離せない。
Thursday, February 21, 2008
Saturday, February 16, 2008
The Tragedy at Northern Illinois University
In my university, there're now counseling services available for the students and faculty:
Counseling Services Available following NIU Tragedy
The our community is deeply saddened by the news of the tragedy at Northern Illinois University and we extend our sincere condolences to the Northern Illinois University community and especially the family and friends of the victims.
For students experiencing concerns as a result of this tragedy, counseling services are available.
Counseling Services Available following NIU Tragedy
The our community is deeply saddened by the news of the tragedy at Northern Illinois University and we extend our sincere condolences to the Northern Illinois University community and especially the family and friends of the victims.
For students experiencing concerns as a result of this tragedy, counseling services are available.
Friday, February 15, 2008
Thursday, February 14, 2008
America in A Recession
The United States is now in a recession. Is it just like the past experience of Japan's slump in the 1990s?
“It certainly appears that the U.S. productivity miracle is over, ..... Our resilience as an economy is way down. So it looks like the United States will experience a milder version of the Japanese disease.” Kenneth S. Rogoff (Harvard University)
“The United States is moving faster than the Japanese did,......So far, so good. But American policy makers have to be ready to take further steps as needed.” Charles Yuji Horioka (Osaka University)
“It certainly appears that the U.S. productivity miracle is over, ..... Our resilience as an economy is way down. So it looks like the United States will experience a milder version of the Japanese disease.” Kenneth S. Rogoff (Harvard University)
“The United States is moving faster than the Japanese did,......So far, so good. But American policy makers have to be ready to take further steps as needed.” Charles Yuji Horioka (Osaka University)
Wednesday, February 13, 2008
いじめをしません
「いじめをしません」 舞鶴・白糸中 バッジで宣言
2月12日19時19分配信 京都新聞
いじめ一掃を目指して配布されたバッジ（舞鶴市浜・白糸中）
京都府舞鶴市の白糸中（浜）で１２日、「いじめをしません」と宣言してバッジを付ける取り組みが始まった。いじめ被害は口頭で友人や教職員に訴えにくいことから、いじめを見かけたり、いじめられた時はバッジを外してＳＯＳを伝える試み。 一昨年秋、部活中などに衣服がなくなる出来事が相次いだため、学級単位で「いじめをしない」というスローガンを廊下に張り出すなど、再発防止活動を進めてきた。
オリジナルバッジは金属製。円形で直径２・５センチ。表面の模様はハートマークを両手で囲む生徒の案を採用した。美術教員が淡い緑と黄色で色づけし、「ＨｏｔＨｅａｒｔＳｈｉｒａｉｔｏ（温かい心白糸中）」との文字を添えた。 １年生と３年生はそれぞれ、「みんなと仲良くします」「誰とでも笑顔で接します」と後野文雄校長に誓ってバッジを受け取り、胸元に着けた。２年生には１３日に手渡す。教職員も付ける。 後野校長は「いじめ被害を言いにくければバッジを外してほしい。教諭たちがすぐに相談に応じるから」と呼びかけていた。
いい試みだと思うが、問題は「なぜいじめが起こるのか？」だ。この研究があるのかどうか小生知らないが、小生の経験則から言うと、いじめは定期テストや強制的な授業から来る過度の精神的ストレス、不満、退屈といったことから起こるのではなかろうか？
人が人をいじめるのは、いじめることのコスト（たとえば教員に告げ口された、とか親が出てきて問題が大きくなるとか）といじめることから得られる便益（ストレスが発散するとか、自分の威力を誇示できるとか）との比較において、その限界便益が限界コストを上回っているからこそいじめるのではなかろうか？
もしそうであるなら、限界コストを引き上げることが、いじめ防止策として考えられよう。問題は、どうその限界コストを引き上げるかだ。
答えは簡単だ。いじめた生徒の出席停止処分（停学、謹慎処分）だ。しかしこれがなぜできない？いじめた側の学習権を奪うからか？わからない。
2月12日19時19分配信 京都新聞
いじめ一掃を目指して配布されたバッジ（舞鶴市浜・白糸中）
京都府舞鶴市の白糸中（浜）で１２日、「いじめをしません」と宣言してバッジを付ける取り組みが始まった。いじめ被害は口頭で友人や教職員に訴えにくいことから、いじめを見かけたり、いじめられた時はバッジを外してＳＯＳを伝える試み。 一昨年秋、部活中などに衣服がなくなる出来事が相次いだため、学級単位で「いじめをしない」というスローガンを廊下に張り出すなど、再発防止活動を進めてきた。
オリジナルバッジは金属製。円形で直径２・５センチ。表面の模様はハートマークを両手で囲む生徒の案を採用した。美術教員が淡い緑と黄色で色づけし、「ＨｏｔＨｅａｒｔＳｈｉｒａｉｔｏ（温かい心白糸中）」との文字を添えた。 １年生と３年生はそれぞれ、「みんなと仲良くします」「誰とでも笑顔で接します」と後野文雄校長に誓ってバッジを受け取り、胸元に着けた。２年生には１３日に手渡す。教職員も付ける。 後野校長は「いじめ被害を言いにくければバッジを外してほしい。教諭たちがすぐに相談に応じるから」と呼びかけていた。
いい試みだと思うが、問題は「なぜいじめが起こるのか？」だ。この研究があるのかどうか小生知らないが、小生の経験則から言うと、いじめは定期テストや強制的な授業から来る過度の精神的ストレス、不満、退屈といったことから起こるのではなかろうか？
人が人をいじめるのは、いじめることのコスト（たとえば教員に告げ口された、とか親が出てきて問題が大きくなるとか）といじめることから得られる便益（ストレスが発散するとか、自分の威力を誇示できるとか）との比較において、その限界便益が限界コストを上回っているからこそいじめるのではなかろうか？
もしそうであるなら、限界コストを引き上げることが、いじめ防止策として考えられよう。問題は、どうその限界コストを引き上げるかだ。
答えは簡単だ。いじめた生徒の出席停止処分（停学、謹慎処分）だ。しかしこれがなぜできない？いじめた側の学習権を奪うからか？わからない。
Introduction to Dynamic Macroeconomics
I have never seen this new textbook of dynamic macroeconomics and so I would like to see it asap. I hope that this book will be the next macro textbook for the first-year grad students.
Tuesday, February 12, 2008
Can Pay Regulation Kill?
This is an interesting and serious article, "Pay regulation can be a killer".
....Centralised pay regulation means hospitals in high wage areas treat fewer patients and these patients have poorer health outcomes. These effects are not trivial: the results suggest that a 10% increase in the gap between the wages paid to NHS (UK National Health Service) nurses and those paid to women working in the private sector locally raises the fatality rate among people admitted with a heart attack by 5%. The size of this effect is not dissimilar to the reductions in heart attack fatalities brought about by the greater use of aspirin and other clot-busting drugs in recent years....
In sum, centralised pay-setting for nurses in the NHS leads to more temporary nurses and lower quality of nurse performance in the NHS, which results in higher fatality rates among patients who are admitted with emergency heart attacks.
Is there someting like that anywhere?
Recently, the products made in Japan have been reported to be lower quality than before. A logo, "Made in Japan", has been known well as just like a brand, but it is about to become an old legend.
One of the reasons has been thought to be that employment-regulation for munufacturer leads to vacancy of skilled labors, high turnover rates and fewer qualified work of labors. After all, it results in lower quality of the products "made in Japan".
Anyway, this is an important problem that we cannot ignore.
Thank you for the pointer of Prof. Otake.
Reference: Can pay regulation kill? Evidence from English hospital trusts
Carol Propper John Van Reenen
30 January 2008
....Centralised pay regulation means hospitals in high wage areas treat fewer patients and these patients have poorer health outcomes. These effects are not trivial: the results suggest that a 10% increase in the gap between the wages paid to NHS (UK National Health Service) nurses and those paid to women working in the private sector locally raises the fatality rate among people admitted with a heart attack by 5%. The size of this effect is not dissimilar to the reductions in heart attack fatalities brought about by the greater use of aspirin and other clot-busting drugs in recent years....
In sum, centralised pay-setting for nurses in the NHS leads to more temporary nurses and lower quality of nurse performance in the NHS, which results in higher fatality rates among patients who are admitted with emergency heart attacks.
Is there someting like that anywhere?
Recently, the products made in Japan have been reported to be lower quality than before. A logo, "Made in Japan", has been known well as just like a brand, but it is about to become an old legend.
One of the reasons has been thought to be that employment-regulation for munufacturer leads to vacancy of skilled labors, high turnover rates and fewer qualified work of labors. After all, it results in lower quality of the products "made in Japan".
Anyway, this is an important problem that we cannot ignore.
Thank you for the pointer of Prof. Otake.
Reference: Can pay regulation kill? Evidence from English hospital trusts
Carol Propper John Van Reenen
30 January 2008
Monty Hall Problem
Now I am taking the course of microeconomics and studying a brief "decision theory".
A decision theory studies how a person makes a decision under the circumstance of uncertainty, thus we use an idea of probability and expectation.
It might be pretty important for us to study the behavior of economic agent under the stochastic environment because almost all of us live and make some choices in the uncertain circumstance.
One of the famous stories related to this area of study is "Monty Hall Problem".
The story is quite simple:
There are three doors and there's a car behind one of the doors and a goat behind each of the left two doors. The problem is:
"If you choose the door 1 and open another door and see a goat behind the door, should you stick with the initial choice(door 1) or switch your choice(door 2 or 3)? "
Anyway, try it!!! If you want to know the brief answer to this problem, please see the first movie. Also, the related link is here.
A decision theory studies how a person makes a decision under the circumstance of uncertainty, thus we use an idea of probability and expectation.
It might be pretty important for us to study the behavior of economic agent under the stochastic environment because almost all of us live and make some choices in the uncertain circumstance.
One of the famous stories related to this area of study is "Monty Hall Problem".
The story is quite simple:
There are three doors and there's a car behind one of the doors and a goat behind each of the left two doors. The problem is:
"If you choose the door 1 and open another door and see a goat behind the door, should you stick with the initial choice(door 1) or switch your choice(door 2 or 3)? "
Anyway, try it!!! If you want to know the brief answer to this problem, please see the first movie. Also, the related link is here.
Japan's Phillips Curve
That's nice!!! Very interesting!!!
I studied the Phillips curve of Japan in the class of econometrics before, but I didn't find it out. Anyway, look at this article and the author's website.
As the title of this article says, Japan's Phillips curve looks like "Japan".
Reference: "Japan's Phillips Curve Looks Like Japan" by GREGOR W. SMITH
forthcoming in Journal of Money, Credit and Banking
I studied the Phillips curve of Japan in the class of econometrics before, but I didn't find it out. Anyway, look at this article and the author's website.
As the title of this article says, Japan's Phillips curve looks like "Japan".
Reference: "Japan's Phillips Curve Looks Like Japan" by GREGOR W. SMITH
forthcoming in Journal of Money, Credit and Banking
Band of Brothers
This is really an excellent TV movie. It is a very important scene of our history and should be handed down from generation to generation. There's neither friend nor foe in the movie, but there's only a battlefield and a critical choice, "to be dead or alive".
It's very long, but doesn't make me bored. Last Saturday and Sunday I watched it all day long. If you have free time to spend or no homework to do, I recommend you to watch it and feel something great about it. I'd like to watch it again if I have more time.
It's very long, but doesn't make me bored. Last Saturday and Sunday I watched it all day long. If you have free time to spend or no homework to do, I recommend you to watch it and feel something great about it. I'd like to watch it again if I have more time.
Sunday, February 10, 2008
Saturday, February 09, 2008
Thursday, February 07, 2008
Impatient People Are Smokers
As Ikeda, Shinsuke, professor of Osaka University, tells(sorry the link is all Japanese), more impatient people smoke more.
The reason is as follows:
When smokers decide if they smoke or not, they usually compare the present value of the utility from smoking today to the present value of the disutility(damage to their tomorrow's health) from enjoying smoking today. When they decide to smoke, their marginal utility of smoking today is higher than their (present value) marginal disutility of not smoking today. (This is a kind of the dynamic optimization problem, though.)
In other words, smokers put more importance on today's enjoyment than on tomorrow's risk to their health(smokers are impatient), and they are less likely to avoid the risk of their health.(smokers are less risk-averse).
Moreover, the people who have much income and feel happy with it are less likely to be impatient, while the people who feel unhappy in their life are more likely to seek for peace of mind today. Thus, smokers are not happy. The amount of the unhappiness that smokers have are well worth $18,000, according to some research.
Smokers are impatient and unhappy. That's an interesting insight.
The reason is as follows:
When smokers decide if they smoke or not, they usually compare the present value of the utility from smoking today to the present value of the disutility(damage to their tomorrow's health) from enjoying smoking today. When they decide to smoke, their marginal utility of smoking today is higher than their (present value) marginal disutility of not smoking today. (This is a kind of the dynamic optimization problem, though.)
In other words, smokers put more importance on today's enjoyment than on tomorrow's risk to their health(smokers are impatient), and they are less likely to avoid the risk of their health.(smokers are less risk-averse).
Moreover, the people who have much income and feel happy with it are less likely to be impatient, while the people who feel unhappy in their life are more likely to seek for peace of mind today. Thus, smokers are not happy. The amount of the unhappiness that smokers have are well worth $18,000, according to some research.
Smokers are impatient and unhappy. That's an interesting insight.
Silver Snow
Today we have a big snow. So the classes we were going to attend were all cancelled.
Looking at the window in my room, I could see white snow frozen on it. Japanese people typically compare today's scenery of snow to "silver" world of snow.
One of the things that I've found since I came here is that a culture is a smell, sound and color. Smell, sound and color are very different from in Japan.
(1)Smell
The people I meet here are a little smelly than those I met in Japan. One research says that the reason is that western people generally eat more meat than eastern people like me. It shows one of the differences of culture from me. The other says that America has a culture of deodorant. That's interesting to me.
(2)Sound
The words I speak may be a little difficult for some American people to hear. For example, actually the word, "Ramen" I speak is very different from that native Americans speak. Even my name, Taro, native Americans call is heard somewhat differently by me. The words we Japanese speak must be heard differently in America than those native Americans speak.
(3)Color
Just as I told before, we express "white snow" as "silver snow". I don't know why we express it like that, though.
Looking at the window in my room, I could see white snow frozen on it. Japanese people typically compare today's scenery of snow to "silver" world of snow.
One of the things that I've found since I came here is that a culture is a smell, sound and color. Smell, sound and color are very different from in Japan.
(1)Smell
The people I meet here are a little smelly than those I met in Japan. One research says that the reason is that western people generally eat more meat than eastern people like me. It shows one of the differences of culture from me. The other says that America has a culture of deodorant. That's interesting to me.
(2)Sound
The words I speak may be a little difficult for some American people to hear. For example, actually the word, "Ramen" I speak is very different from that native Americans speak. Even my name, Taro, native Americans call is heard somewhat differently by me. The words we Japanese speak must be heard differently in America than those native Americans speak.
(3)Color
Just as I told before, we express "white snow" as "silver snow". I don't know why we express it like that, though.
Saturday, February 02, 2008
ネットカフェ難民
嗚呼、頭が痛い話題だ。大竹教授のブログはネットカフェ難民についてである。
『ただ、「派遣の規制緩和が行われなければ、問題は発生しなかったのか」、というとそうではないだろう。携帯電話やネットを使うことで労働市場のマッチング能力が向上したという側面があるのは間違いない。問題は、その効率性の上昇という果実が、労働者にほとんど分配されていないということだ。高まった労働市場のマッチング機能を生かして、その効率性の上昇分を、派遣業者だけが取ってしまうことがないような仕組みを作ることが必要ではないか。』
特に、「問題は、その効率性の上昇という果実が、労働者にほとんど分配されていないということだ。高まった労働市場のマッチング機能を生かして、その効率性の上昇分を、派遣業者だけが取ってしまうことがないような仕組みを作ることが必要ではないか。」という部分。
労働市場における派遣業者（職を労働者に紹介し、派遣先企業からマージンをとって業務を営む、したがって、派遣業者は直接労働者を指揮監督せず、派遣先がそれを行う）についての実態は驚くほど明らかにされていないのが現状ではなかろうか。
派遣業者が寡占的に行動していれば、労働市場において、競争市場下で実現するだろう市場厚生（余剰）よりも小さくなるように考えられる。本来労働者に与えられるであろう賃金が派遣業者のマージンにより下がり、労働者に効率性の余剰が十分に配分されていない。つまり、市場において「死加重的損失」が発生している可能性が考えられる。（価格が限界費用よりも高いために、本来市場で実現すべき販売/購買量が低くなることと同じ。）
もしそうであるなら、派遣業者への何らかの規制措置を市場の効率性の観点から考えなくてはならないかもしれない。労働市場の規制緩和、つまり派遣業務の適用拡大は雇用の流動化に一役を買い、多くの失業者に一時的な職のチャンスが与えられたのは事実かもしれない。しかし、このことが非正規雇用を大きくさせ、所得格差を拡大させた一因であると見る識者も多い。（大竹教授は所得格差を高齢化の証左と見ていることで内外の批判を浴びているが、その点についてはここでは論じない。）
非正規、正規であれ、所得が与えられるチャンスは貴重であることは確かだが、大竹教授の言うように、効率性の配分を労働者/派遣業者の間で適正（？）にすることが大きな課題かもしれない。
『ただ、「派遣の規制緩和が行われなければ、問題は発生しなかったのか」、というとそうではないだろう。携帯電話やネットを使うことで労働市場のマッチング能力が向上したという側面があるのは間違いない。問題は、その効率性の上昇という果実が、労働者にほとんど分配されていないということだ。高まった労働市場のマッチング機能を生かして、その効率性の上昇分を、派遣業者だけが取ってしまうことがないような仕組みを作ることが必要ではないか。』
特に、「問題は、その効率性の上昇という果実が、労働者にほとんど分配されていないということだ。高まった労働市場のマッチング機能を生かして、その効率性の上昇分を、派遣業者だけが取ってしまうことがないような仕組みを作ることが必要ではないか。」という部分。
労働市場における派遣業者（職を労働者に紹介し、派遣先企業からマージンをとって業務を営む、したがって、派遣業者は直接労働者を指揮監督せず、派遣先がそれを行う）についての実態は驚くほど明らかにされていないのが現状ではなかろうか。
派遣業者が寡占的に行動していれば、労働市場において、競争市場下で実現するだろう市場厚生（余剰）よりも小さくなるように考えられる。本来労働者に与えられるであろう賃金が派遣業者のマージンにより下がり、労働者に効率性の余剰が十分に配分されていない。つまり、市場において「死加重的損失」が発生している可能性が考えられる。（価格が限界費用よりも高いために、本来市場で実現すべき販売/購買量が低くなることと同じ。）
もしそうであるなら、派遣業者への何らかの規制措置を市場の効率性の観点から考えなくてはならないかもしれない。労働市場の規制緩和、つまり派遣業務の適用拡大は雇用の流動化に一役を買い、多くの失業者に一時的な職のチャンスが与えられたのは事実かもしれない。しかし、このことが非正規雇用を大きくさせ、所得格差を拡大させた一因であると見る識者も多い。（大竹教授は所得格差を高齢化の証左と見ていることで内外の批判を浴びているが、その点についてはここでは論じない。）
非正規、正規であれ、所得が与えられるチャンスは貴重であることは確かだが、大竹教授の言うように、効率性の配分を労働者/派遣業者の間で適正（？）にすることが大きな課題かもしれない。
Mankiw on Tax Policy
In Japan, there are a lot of types of discussion about tax policy. Many of them look a mixture of Keynesian and New Classical theory.
Prof. Mankiw did well to summarize the points on tax policy and it should be carried on his new 6th edition of the Principles of Economics not only for students but also for policymakers:
#1 Efficiency: The tax system should distort incentives as little as possible (and, in the case of externalities and Pigovian taxes, correct incentives when necessary).
#2 Intergenerational equity: The tax system should raise enough revenue so current generations do not unduly burden future generations.
#3 Egalitarianism: The tax system should try to achieve a more equal distribution of after-tax incomes.
#4 Stabilization: The tax system should help maintain the economy at full employment.
Many policymakers in Japan, especially some members of LDP, seem to have been from #4 Stabilization to #1 Efficiency. One of the reasons is that they recognize that change on tax doesn't boost the stagnant economy in the 1990s and they begin to know that it is more important for them to keep the economy as efficient as possible in order to make private companies strong.
If private companies become strong, then the profit, income and employment raise up and thus does individual consumption. This idea has been alive since ex-Prime Minister Koizumi and his main economic advisors, Takenaka(Keio Univ.) and Honma(Osaka Univ.) were at work. Especially Honnma emphasized such logic during his work. However, nobody knows if it is true or not.
Many members of LDP don't seem to put emphasis on #2 Intergenerational equity and #3 Egalitarianism.
The reason is that, especially #3 seems a little socialistic and so they don't try to aim at #3. Surprisingly they fail to look at #2. Why not? I think that the reason is that many of them are over 60. So they can't understand their future generations or they may hope that future generations will overcome the problem of the burden of tax reduction in their hearts.
Anyway, in Japan there seems no such classical tradeoff between efficiency and fairness regarding the tax policy. Many of the members of LDP look only at #1. Is that OK in terms of the theory of economic policy? I have no idea.
Prof. Mankiw did well to summarize the points on tax policy and it should be carried on his new 6th edition of the Principles of Economics not only for students but also for policymakers:
#1 Efficiency: The tax system should distort incentives as little as possible (and, in the case of externalities and Pigovian taxes, correct incentives when necessary).
#2 Intergenerational equity: The tax system should raise enough revenue so current generations do not unduly burden future generations.
#3 Egalitarianism: The tax system should try to achieve a more equal distribution of after-tax incomes.
#4 Stabilization: The tax system should help maintain the economy at full employment.
Many policymakers in Japan, especially some members of LDP, seem to have been from #4 Stabilization to #1 Efficiency. One of the reasons is that they recognize that change on tax doesn't boost the stagnant economy in the 1990s and they begin to know that it is more important for them to keep the economy as efficient as possible in order to make private companies strong.
If private companies become strong, then the profit, income and employment raise up and thus does individual consumption. This idea has been alive since ex-Prime Minister Koizumi and his main economic advisors, Takenaka(Keio Univ.) and Honma(Osaka Univ.) were at work. Especially Honnma emphasized such logic during his work. However, nobody knows if it is true or not.
Many members of LDP don't seem to put emphasis on #2 Intergenerational equity and #3 Egalitarianism.
The reason is that, especially #3 seems a little socialistic and so they don't try to aim at #3. Surprisingly they fail to look at #2. Why not? I think that the reason is that many of them are over 60. So they can't understand their future generations or they may hope that future generations will overcome the problem of the burden of tax reduction in their hearts.
Anyway, in Japan there seems no such classical tradeoff between efficiency and fairness regarding the tax policy. Many of the members of LDP look only at #1. Is that OK in terms of the theory of economic policy? I have no idea.
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