An Analysis of the Effects and Mechanisms of the “Gift Economy” in Ojiya City in the Aftermath of the Niigata Chuetsu Earthquake of 2004

Abstract

This paper examines the effects of the “gift economy” and explains the reasons for its emergence in the aftermath of large-scale earthquake disasters. The first half of this paper is dedicated to understanding the negative impact of in-kind donations (which is called “gift economy” in contrast to “market economy”) on commercial businesses by using data from the questionnaire survey administered by the author in Ojiya city, Niigata. The latter half of this paper is devoted to theoretically explaining why a “gift economy” emerges in the aftermath of disasters, incorporating the concept of transaction cost. The primary conclusion is that a gift economy is a rational institution that emerges in the immediate phase of disaster, and an attempt to introduce a market system in the disaster economy would result in failure. Instead, the “arrangement economy,” which emerges in the transition from a gift economy to market economy, should be reinforced in order to ensure a smooth transition.