DOCSLIB.ORG

The Hicks-Morishima Approach Reconsidered

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Hicks-Morishima Approach Reconsidered Articles I Michio Morishima and John R. Hicks: the Two Superstars of Economics There are the two economics superstars The Hicks-Morishima who have greatly influenced my academic ca- Approach Reconsidered reer. They are Michio Morishima, Osaka University and London School of Economics, and John R. Hicks, London School of Eco- Another Look at the Interdependence nomics and Oxford University. To tell the of Several Markets truth, both of them already passed away. Aca- demically, however, they seem to be still alive: indeed, their outstanding accomplishments will never be forgotten in economic science. The main aim of this paper is to reconsider and shed new light on a topic named the Hicks- Yasuhiro Sakai Morishima approach to the interdependence Shiga University / Professor Emeritus of several markets. Although such approach has been rather neglected for some time, I am sure that even now, it is worthy of serious re- consideration, presumably giving a new guide toward an integrated grand theory of social sci- ence in the twenty-first century. No doubt, this should be the direction of future research to be strongly desired by both Morishima and Hicks in their late years. When I was a graduate student at the Uni- versity of Rochester, I was fortunate to meet with Mr. Masayoshi Hirota, a "very serious man with highly samurai spirits," who so fondly argued night and day with me about life phi- losophy, world matters, and of course 072 THE HIKONE RONSO Summer / July 2020 / No.424 economic science. According to Hirota, we completion of my doctoral dissertation (1972) should not have any fears about the seemingly Axiomatic Foundations of Consumption and high levels of American universities. Osaka Production Theories submitted to The Universi- University seemed to be at least on a par with, ty of Rochester, with my main thesis advisor and even better than, University of Rochester. being Professor Lionel W. McKenzie. After Hirota proposed me to do a joint work on gen- finishing my Ph. D. work and publishing many eral equilibrium theory with the final aim of theoretical papers in international journals, I publishing academic papers in professional could spend a happy life at Pittsburgh, in journals of high prestige. We worked very hard which Professor Asatoshi Maeshiro and his by utilizing every space of the Rochester cam- wife Kazuko kindly helped me in many ways. pus, namely the university library, class rooms, All those nice things happened to my rather student dining rooms, and the graduate stu- long American life in the period 1968-1976.1) dent center. After some time of our joint I can vividly recall that at the very end of research, there came our final product, Hirota 1973, my important meeting with Michio Mor- and Sakai (1969), which aimed to open a new ishima took place in New York City. More horizon in theoretical studies in production exactly, he was invited to deliver a special lec- theory. Although our joint paper had a hum- ture at Econometric Society North American ble yet attractive title "On Substitution and Meeting at New York Hilton Hotel, with Pro- Scale Effects in Production Theory," it was fessor Lawrence W. Klein of Pennsylvania quite unfortunate that because of some minor serving as a respectable chairman. The audi- technical reasons, it missed a publication op- ence filled the hall to overflowing. Professor portunity. Akira Takayama, a noted international econo- In hindsight, I am sure that my joint re- mist, sat in the very front seat, taking so many search experience with Mr. Hirota, or "Osaka pictures. All the people seemed to have a very samurai scholar," has constantly given us a great happy time by enjoying the presence of the stimulus for the execution of our research proj- memorable trio, namely Morishima, Klein and ect on economic theory. Indeed, having been Takayama. Then, Morishima stood up and de- encouraged a great deal by the Hirota-Sakai livered a historical speech: "Kark Marx is so cooperation, I myself continued to learn many great! I have no doubt that he is academically advanced mathematical tools which were ap- still alive after one hundred years of his death!" plicable not only to production theory, but In an instant, the whole audience stood up and also to consumption theory as well. The final applauded his powerful speech.2) result of my continuous research effort was the 1) In September 1972, I submitted my Ph.D. disserta- Morishima of Osaka University and Lawrence Klein of tion to the University of Rochester, with Professors Lio- the University of Pennsylvania. nel W. McKenzie and James Friedman being thesis ad- 2) More exactly speaking, Professor Morishima's invited visers. As we seen in Sakai (1972), the thesis consisted of lecture was titled the two parts. The first part carefully discussed axiom- Marx in the Light of Modern Economic . It was nothing but a Walras memorial lecture at atic approaches to consumption theory, the second part Theory the North American Meeting of Econometric Society. mathematical foundations of production theory. I Although it was first read at Hilton Hotel, New York, in would like to point out that Chapter 3 in Part 2, titled 28 December 1973, it was later published as a leading ar- , was An Axiomatic Approach to Input Demand Theory ticle of (see Morishima, 1974). It was real- based on my joint work with Dr. Masayoshi Hirota with Econometrica ly lucky that I myself was right there as an attentive au- further refinements. Very fortunately, a still further re- dience. This constitutes one of never-to-be-forgotten vision of this Chapter was published in International memories in my long academic life. Economic Review, which was first published by Michio The Hicks-Morishima Approach Reconsidered Yasuhiro Sakai 073 In what follows, I would like to just pick mind was how Hicks' market laws aforemen- up Hicks' great book Value and Capital (1939, tioned would had to change by the 1946), carefully discussing how closely Hicks introduction of distance and space. In my and Morishima have been connected by this student days, I was literally swamped with masterpiece. A famous writer Naoki Komuro such a very difficult problem. (2004) once remarked: (Morishima, 1999) During the Second World War, Morishima It was quite fair to say that in those days, served as a naval cadet whose duty wasto Morishima stood high and alone in the Japa- break a secret code of the enemy. When he nese academia: in fact, the research level of left home toward a battlefront, he carried an Morishima went far beyond the one of any or- important book with himself. That book dinary Japanese economist. He was a man of was nothing but a newly published text Va l - courage and determination. The major aim of ue and Capital by Hicks, then a rising star this paper is to reconsider Hicks' law of market economist of the United Kingdom, one of exchange in a new modern fashion, thus fur- Japan's hostile countries. Nevertheless, Mor- ther extending the Hicks-Morishima approach ishima, who faithfully conducted his secret with my unique flavor attached to it. mission of code breaking, dared to exert all I have met with Hicks several times. My his energy to fully understand the Hicks most memorable moment took place when I new book, and safely could return home attended the International Conference in (Komuro, 2004) Honor of J.R. Hicks, Bologna, Italy, in 1991. It gave me a great and unforgettable memory. Later in his life, Morishima (1999) got a The outline of this paper is as follows. The sudden surge of nostalgia for his youth: second section will deal with s simple model of general equilibrium — the excess demand ap- When I [Morishima] was a Kyoto Universi- proach a la Hicks and Morishima. The third ty student just after the last war, I was fondly section will discuss many non-normal cases. reading Value and Capital by J.R. Hicks. The issues of instability, multiple equilibrium He discovered the following law of critical and non-existence will be successively taken up. importance: "Let the excess demand for one In the fourth section, we will turn to the prob- good increase. Then, not only will its price lem of comparative statics. The impact of will rise, but also the prices of other substi- parameter changes on equilibrium values will tutive goods will rise, whereas the prices of carefully be investigated. Final remarks will be complementary goods will decline." I no- made in the fifth section, with reference to ticed, however, that he carelessly neglected Morishima's life-long dream of a grand synthet- the undeniable truth that any economic ac- ic approach to a so-called "symphonic tivity including market trading had to economics." operate at some distance in a space. My question which would naturally arise in my 074 THE HIKONE RONSO Summer / July 2020 / No.424 II A Simple Model of I suppose that Morishima would apparent- General Equilibrium: ly agree with those reasons. In order for the The Excess Function excess demand approach to become very famil- Approach a la iar to the academic circle, we would have to do Hicks and Morishima a sort of extraordinary work for publicity and sales effort. Morishima had special courage to Saying is one thing. But doing is another. write a new style of economics text (1984) The Now let us discuss the working and perfor- Economics of Industrial Society, in which he ad- mance of a simple model of general opted the Hicks-Morishima approach again. equilibrium. To this end, we will adopt the ex- Unfortunately, history repeated itself : it again cess demand approach a la Hicks and received a rather dull response.
Load more

Recommended publications
  • HOW DOES CULTURE MATTER? Amartya Sen 1. Introduction
    Forthcoming in "Culture and Public Action" Edited by Vijayendra Rao and Michael Walton. HOW DOES CULTURE MATTER?1 Amartya Sen 1. Introduction Sociologists, anthropologists and historians have often commented on the tendency of economists to pay inadequate attention to culture in investigating the operation of societies in general and the process of development in particular. While we can consider many counterexamples to the alleged neglect of culture by economists, beginning at least with Adam Smith (1776, 1790), John Stuart Mill (1859, 1861), or Alfred Marshall (1891), nevertheless as a general criticism, the charge is, to a considerable extent, justified. This neglect (or perhaps more accurately, comparative indifference) is worth remedying, and economists can fruitfully pay more attention to the influence of culture on economic and social matters. Further, development agencies such as the World Bank may also reflect, at least to some extent, this neglect, if only because they are so predominately influenced by the thinking of economists and financial experts.2 The economists’ scepticism of the role of culture may thus be indirectly reflected in the outlooks and approaches of institutions like the World Bank. No matter how serious this neglect is (and here assessments can differ), the cultural dimension of development requires closer scrutiny in development analysis. It is important to investigate the different ways - and they can be very diverse - in which culture should be taken into account in examining the challenges of development, and in assessing the demands of sound economic strategies. The issue is not whether culture matters, to consider the title of an important and highly successful book jointly edited by Lawrence Harrison and Samuel Huntington.3 That it must be, given the pervasive influence of culture in human life.
    [Show full text]
  • Involuntary Unemployment Versus "Involuntary Employment" Yasuhiro Sakai 049 Modern Perspective
    Articles Introduction I One day when I myself felt tired of writing some essays, I happened to find a rather old book in the corner of the bookcase of my study. The book, entitledKeynes' General Theory: Re- Involuntary ports of Three Decades, was published in 1964. Unemployment versus More than four decades have passed since then. “Involuntary As the saying goes, time and tide wait for no man! 1) Employment” In the light of the history of economic thought, back in the 1930s, John Maynard J.M. Keynes and Beyond Keynes (1936) wrote a monumental work of economics, entitled The General Theory of -Em ployment, Interest and Money. How and to what degree this book influenced the academic circle at the time of publication, by and large, Yasuhiro Sakai seemed to be dependent on the age of econo- Shiga University / Professor Emeritus mists. According to Samuelson (1946), contained in Lekachman (1964), there existed two dividing lines of ages; the age of thirty-five and the one of fifty: "The General Theory caught most economists under the age of thirty-five with the unex- pected virulence of a disease first attacking and decimating an isolated tribe of south sea islanders. Economists beyond fifty turned out to be quite immune to the ailment. With time, most economists in-between be- gan to run the fever, often without knowing or admitting their condition." (Samuelson, p. 315) In 1936, Keynes himself was 53 years old be- cause he was born in 1883. Remarkably, both Joseph Schumpeter and Yasuma Takata were born in the same year as Keynes.
    [Show full text]
  • Japan at a Deadlock Also by Michio Morishima
    Japan at a Deadlock Also by Michio Morishima WHY HAS JAPAN ‘SUCCEEDED’? Japan at a Deadlock Michio Morishima STICERD London School of Economics and Political Science Partly translated by Janet Hunter First published in Great Britain 2000 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN 978-1-349-41154-2 ISBN 978-0-230-51216-0 (eBook) DOI 10.1057/9780230512160 First published in the United States of America 2000 by ST. MARTIN’S PRESS, LLC, Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 Library of Congress Cataloging-in-Publication Data Morishima, Michio, 1923– Japan at a deadlock / Michio Morishima. p. cm. Includes bibliographical references and index. 1. Japan—Economic conditions. 2. Japan—History—1868– 3. Capitalism– –Japan. I. Title. HC462.95 .M6764 2000 330.952—dc21 00–033292 © Michio Morishima 2000 Softcover reprint of the hardcover 1st edition 2000 978-0-333-74894-7 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 0LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages.
    [Show full text]
  • ΒΙΒΛΙΟΓ ΡΑΦΙΑ Bibliography
    Τεύχος 53, Οκτώβριος-Δεκέμβριος 2019 | Issue 53, October-December 2019 ΒΙΒΛΙΟΓ ΡΑΦΙΑ Bibliography Βραβείο Νόμπελ στην Οικονομική Επιστήμη Nobel Prize in Economics Τα τεύχη δημοσιεύονται στον ιστοχώρο της All issues are published online at the Bank’s website Τράπεζας: address: https://www.bankofgreece.gr/trapeza/kepoe https://www.bankofgreece.gr/en/the- t/h-vivliothhkh-ths-tte/e-ekdoseis-kai- bank/culture/library/e-publications-and- anakoinwseis announcements Τράπεζα της Ελλάδος. Κέντρο Πολιτισμού, Bank of Greece. Centre for Culture, Research and Έρευνας και Τεκμηρίωσης, Τμήμα Documentation, Library Section Βιβλιοθήκης Ελ. Βενιζέλου 21, 102 50 Αθήνα, 21 El. Venizelos Ave., 102 50 Athens, [email protected] Τηλ. 210-3202446, [email protected], Tel. +30-210-3202446, 3202396, 3203129 3202396, 3203129 Βιβλιογραφία, τεύχος 53, Οκτ.-Δεκ. 2019, Bibliography, issue 53, Oct.-Dec. 2019, Nobel Prize Βραβείο Νόμπελ στην Οικονομική Επιστήμη in Economics Συντελεστές: Α. Ναδάλη, Ε. Σεμερτζάκη, Γ. Contributors: A. Nadali, E. Semertzaki, G. Tsouri Τσούρη Βιβλιογραφία, αρ.53 (Οκτ.-Δεκ. 2019), Βραβείο Nobel στην Οικονομική Επιστήμη 1 Bibliography, no. 53, (Oct.-Dec. 2019), Nobel Prize in Economics Πίνακας περιεχομένων Εισαγωγή / Introduction 6 2019: Abhijit Banerjee, Esther Duflo and Michael Kremer 7 Μονογραφίες / Monographs ................................................................................................... 7 Δοκίμια Εργασίας / Working papers ......................................................................................
    [Show full text]
  • On Marx, the Transformation Problem and Opacity Baumol - Samuelson - Morishima
    This content downloaded from 193.49.18.51 on Mon, 25 Aug 2014 11:37:14 UTC All use subject to JSTOR Terms and Conditions On Marx, the Transformation Problem and Opacity Baumol - Samuelson - Morishima Editor's Note: Few articles in the historyof the JEL have stirred the controversythat Paul A. Samuel- son's "Understandingthe Marxian Notion ofExploitation: A Summary of the So-called Transformation Problembetween Marxian Valuesand CompetitivePrices, "J. Econ. Lit., June 1971, 9 (2), pp. 399-431, did. We have already had one "terminal"discussion of the reaction-Bronfenbrenner, M. "Samuelson, Marx, and TheirLatest Critics,"and "Samuelson's 'Replyon Marxian Matters' "J. Econ. Lit., March 1973, 11 (1), pp. 59-63. ProfessorBaumol has found a history of thought approach to the topic which deserves the attention of all economists who have an interest in Marx, Marxism, or the evolution of classical economic thought. We print his essay here. Professor Samuelson sought to comment on Baumol's work,and wegive his views,as well. In the course ofSamuelson 's reply, he "tookon "Professor Morishimca,who quite naturally wanted to add a few words offurther explanation. We have finally allowed ProfessorsBaumol and Samuelson to share in what we hope are the "last words." M.P. The Transformation of Values: What Marx "Really" Meant (An Interpretation) By WILLIAM J. BAUMOL Princeton and New York Universities I would like to thank the students in my seminar on doctrinal history at Princeton Universitywhose discussions contributedgreatly to the ideas in this paper. I am also grateful to Elizabeth Bailey, Fritz Machlup, Michio Morishima and Paul Samuelson for their very helpful comments on earlier drafts of this paper.
    [Show full text]
  • Ethics and Economics by Amartya
    ON ETHICS & ECONOMIC AMARTYA SEN On Ethics and Economics Copyrighted material The Royer Lectures Series Editor: John M. Letiche University of California, Berkeley On Ethics and Economics Amartya Sen Blackwell Publishing Copyrighted material ©1987, 1988 by Amartya Sen BLACKWELL PUBLISHING 350 Main Street, Malden, MA 02148-5020, USA 108 Cowley Road, Oxford 0X4 1JF, UK 550 Swanston Street, Carlton., Victoria 3053, Australia All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher. First published 1987 First published in paperback 1988 Reprinted 1990, 1991, 1992, 1994, 1995, 1996, 1997, 1998, 1999 (twice), 2002, 2003, 2004 Library of Congress Cataloging- -in-Publication Data Sen, Amartya On ethics and economics. 1. Economics—Moral and ethical aspects L 174'.4 HB72 ISBN 0-631-16401 -4 (pbk) A catalogue record for this title is available from the British Library. Set in 11 on 13 pt Times by Columns of Reading Printed arid bound in the United Kingdom by Athenæum Press Ltd, Gateshead, Tyne & Wear The publisher ' s policy is to use permanent paper from mills that operate a. sustainable forestry policy, and which has been manufactured from pulp processed using acid-free and elementary chlorine-free practices. Furthermore, the publisher ensures that the text paper and cover board used have met acceptable environmental accreditation standards. For further information on Blackwell Publishing, visit our website: http://www.blackwellpublishing.com To Ken Arrow Copyrighted material Contents Foreword by John M.
    [Show full text]
  • A Historial Transformation from Feudalism to 'Capitalism' Michio
    A Historial Transformation from Feudalism to 'Capitalism' Michio Morishima Discussion Paper The Suntory Centre No. JS/86/138 Suntory and Toyota International Centres for 1986 Economics and Related Disciplines London School of Economics and Political Science Houghton Street, London, WC2A 2AE, UK. Tel. 020-7955 6698 NB: This PDF was retrospectively created in February 2004 of the STICERD discussion paper previously published in 1986. Abstract 'Where feudalism ends, the capitalist regime commences.' This familiar and prima facie self-evident statement is the proposition which I want to examine in this paper. I would argue as follows: Even given the uniformity of feudalism everywhere in the world (i.e. if it has always appeared in its purest form with no deviation from the logically constructed ideal type), it must have appeared in combination with many other elements such as, for example, whether a country has an oceanic or continental climate, the types of weapons available in a society, the type of religion most influential in the lives of the people there, and so forth. These additional elements must also play significant roles; so where combinations vary, different types of economy (or society) must be obtained after any transition from feudalism to a more developed mode of production. It may thus be conjectured that even if feudalism were unique, capitalism as a result of the transition would not be unique. The present paper aims to confirm this conjecture by comparing aspects of the history of Japan with that of England. Keywords: Japan, England, feudalism, capitalism, history. © by Michio Morishima. All rights reserved.
    [Show full text]
  • Michio Morishima, 1923-2004
    Michio Morishima, 1923-2004 Kotaro Suzumura* Institute of Economic Research, Hitotsubashi University December 10, 2004 It is my great honour to be invited to this occasion and talk on behalf of many Japanese economists who share with me great respect for, and affectionate memory of Professor Michio Morishima. It was in the late 1960s that Michio decided to resign from the Institute for Social and Economic Research, Osaka University, which he had nourished from an embryonic institution with only four faculties into a fully-fledged research institute with great world-wide reputation. He accepted the Keynes Visiting Professorship at the University of Essex and, subsequently, Sir John Hicks Professorship in Economics at London School of Economics. Ever since, and until his regrettable passing during this summer, Michio remained in England for more than thirty years, paying only sporadic and short visits to Japan. Out of sight, out of mind, so a proverb says, but this does not apply to the case of Michio. In addition to his universal influence as one of the leading economic theorists in the world arena, Michio has been influential in Japan for at least three distinct reasons. In the first place, although Michio published widely in English including his theoretical gem, Equilibrium, Stability and Growth, his publications in Japanese were even more extensive in coverage and versatile in parlance, which ranged over the best introductory textbook, in my own personal judgement, on input-output analysis, an enlightening essay on Japan vis-à-vis Britain in the domain of education and economic management, and the three-volume Memoirs which he published in 1997-2002.
    [Show full text]
  • Dynamic Econometrics in Action: a Biography of David F. Hendry
    Board of Governors of the Federal Reserve System International Finance Discussion Papers Number 1311 March 2021 Dynamic Econometrics in Action: A Biography of David F. Hendry Neil R. Ericsson Please cite this paper as: Ericsson, Neil R. (2021). \Dynamic Econometrics in Action: A Biography of David F. Hendry," International Finance Discussion Papers 1311. Washington: Board of Governors of the Federal Reserve System, https://doi.org/10.17016/IFDP.2021.1311. NOTE: International Finance Discussion Papers (IFDPs) are preliminary materials circulated to stimu- late discussion and critical comment. The analysis and conclusions set forth are those of the authors and do not indicate concurrence by other members of the research staff or the Board of Governors. References in publications to the International Finance Discussion Papers Series (other than acknowledgement) should be cleared with the author(s) to protect the tentative character of these papers. Recent IFDPs are available on the Web at www.federalreserve.gov/pubs/ifdp/. This paper can be downloaded without charge from the Social Science Research Network electronic library at www.ssrn.com. DYNAMIC ECONOMETRICS IN ACTION: A BIOGRAPHY OF DAVID F. HENDRY Neil R. Ericsson∗ March 2021 Abstract : David Hendry has made–and continues to make–pivotal contributions to the econometrics of empirical economic modeling, economic forecasting, econometrics software, substantive empirical economic model design, and economic policy. This paper reviews his contributions by topic, emphasizing the overlaps between different strands in his research and the importance of real-world problems in motivating that research. Keywords: cointegration, consumers’ expenditure, dynamic specification, equilibrium correction, forecasting, machine learning, model evaluation, money demand, PcGive, structural breaks.
    [Show full text]
  • The ET Interview: Professor L. R. Klein
    Econometric Theory, 3, 1987, 409-460. Printed in the United States of America. THE ET INTERVIEW: PROFESSOR L.R. KLEIN Interviewedby Roberto S. Mariano LawrenceR. Klein LawrenceR. Klein, 1980Nobel Laureatein Economics"for the creationof econometricmodels and theirapplication to the analysisof economicfluc- tuationsand economicpolicies,"' has playeda significantrole in the devel- opmentof econometricmethodology and practiceover the past forty years. Long recognizedas a leaderin economicmodel-building, Lawrence R. Kleinhas alwaysunderscored the integrationof economictheory, statisti-. cal methods,and practicaleconomic analysis in his researchactivities. His pioneeringand continuingwork in large-scalemodeling has served as a trainingground in appliedeconometrics for manyacademicians, corporate executives,and governmentofficials from all over the world. His lasting worldwideinfluence in the econometricsprofession is a tributenot only to the intellectualprowess of his researchbut also to his willingnessto give generouslyof himself in interactingwith studentsand colleagues. There are earlierpublished materials on LawrenceR. Kleinwhich con- tamna more detaileddiscussion of his researchcontributions: ?1987 Cambridge University Press 0266-4666/87 $5.00 + .00 409 410 ROBERTOS. MARIANO 1. Breit, W. & R.W. Spencer (eds.). Lives of the Laureates-Seven Nobel Economists. Cambridge, MA: The M.I.T. Press, 1986. 2. Ball, R.J. Lawrence R. Klein's contributions to economics. Scandina- vian Journal of Economics 83 (1981): 81-103. 3. Klein, L.R. Autobiography in Les Prix Nobel 1980, pp. 269-272. Alm- quist and Wiksell International, Stockholm, 1981. 4. Marquez, J. (ed.). Lawrence Klein -Economic Theory and Economet- rics. Philadelphia: University of Pennsylvania Press, 1985. 5. Wold, H. The Prize for Economic Science in Memory of Alfred Nobel in Les Prix Nobel 1980, pp. 263-265. Almquist and Wiksell Interna- tional, 1981.
    [Show full text]
  • Why I Expect Japan to Prevail: Ruminations on Morishima Hugh Patrick*
    September 1998 (revised) Why I Expect Japan to Prevail: Ruminations on Morishima Hugh Patrick R.D. Calkins Professor of International Business Graduate School of Business Columbia University New York City “Why Has Japan Stumbled – Causes and Cures” Macquarie University Sydney, Australia 21 August 1998 Why I Expect Japan to Prevail: Ruminations on Morishima Hugh Patrick* I believe that man will not merely endure: he will prevail. William Faulkner Michio Morishima is an eminent economic theorist and also an amateur cultural and intellectual historian of Japan. This is evident in his 1998 paper “Why Do I Expect Japan to Collapse?”, which is the focus of the discussion here. The paper is most appropriately understood in the context of its intellectual heritage, Morishima’s stimulating and controversial 1982 book, Why Has Japan “Succeeded”?. The book informs us about a number of major themes alluded to but, due to lack of space, not developed in the paper. The paper asks where Japan is likely to be in 2050, and why. As the contrasting titles suggest, Morishima seems to see a less shining future for Japan than he once did. His style is sometimes exaggerated, his terminology sometimes apocalyptic. Morishima’s paper is rich, dense, multi-faceted, and full of ideas – many insightful, some superficial, and some not deserving consideration. He likes to make provocatively extravagant statements. He put Succeeded in the book title in quotation marks. I wonder why he did not put Collapse in the title of the paper in quotation marks. After all, his definition of collapse turns out not to be collapse at all.
    [Show full text]
  • Klein's Contribution to Economics and University Penn Through the International Economic Review
    Klein’sContribution to Economics and University Penn through the International Economic Review Harold Cole Editor of the IER October 24, 2014 Harold Cole, Editor of the IER () Klein’s Contribution to Economics and University Penn throughOctober24,2014 the International Economic 1/11 Review The International Economic Review was founded in 1960 by Lawrence Klein and Michio Morishima. They seemed to have first really gotten together at Oxford where Klein was hanging out after it became known that he had briefly been a member of the Communist Party. And it continues as a joint venture between the University of Pennsylvania and Osaka University. From the beginning Klein and Morishima envisioned a journal with broad interests and a strong concern with fundamental advances in the science of economics. That vision led to the Journal’spublishing a host of fundamental articles in Economics across a wide range of fields. Harold Cole, Editor of the IER () Klein’s Contribution to Economics and University Penn throughOctober24,2014 the International Economic 2/11 Review Klein in his memorial for Morishima mentioned several articles from the early editions to indicate both the Journal’sbreath and success. Benoit Mandlebrot’sstochastic processes for generating income distributions. J. Harsanyi’sgeneralization of Nash equilibria for game theory. Paul Samuelson’sanalysis of the St. Petersburg Paradox Kenneth Arrow’sand Leonid Hurwicz’sanalysis of Stability and Weak Gross Substitutability. H Nikaido’sand H Uzawa’sStability in a Walrasian Tatonnement Process. Herbert Scarf’sInstability of Competitive Equilibrium. Harold Cole, Editor of the IER () Klein’s Contribution to Economics and University Penn throughOctober24,2014 the International Economic 3/11 Review These are some great papers: In looking at some of the most cited papers in the IER over the years, I wanted to add a few favorites of my own to his list.
    [Show full text]