2019 Volume 12 Pages 75-86
The issues of low fertility and aging population make progress in Japan and many countries in the world mean that a large fraction of the population in each country’s cognitive ability declines either as a normal aging process or as dementia. In addition, the child care service becomes more important as female labor participation increases. Given that an old person whose cognitive ability has severely declined, or a child cannot effectively use the market mechanism alone, an important problem is how the market and community mechanisms should be combined for the society. Behavioral economics has not yet completed a framework for such a problem. Various research, however, has already been conducted that will be useful to do research on such a problem and related problems. An example is a study of how to introduce an ethical vies that is called virtue ethics to models with endogenous preferences. This paper surveys research on normative economics and the community from this point of view.
