Dazai Shundai （1680―1747） associated the problem of the interest in people’s welfare
by creating useful means for which they enriched their lives with institutionalization
processes of political economy in the early eighteenth-century Japan. He
meant that the purpose of public welfare-to cause stability and prosperity of the
community and people’s lives in general-was established as a part of practical
learning, through institutionalization. This offered a practical approach to rationality.
Dazai linked “the road to public welfare by interests” with the management of the
state and human relief. When he attempted to discuss the problem of the ‘the law of
joheiso’ as an institutional framework, on the basis of the theme of public welfare of
people by interest, his philosophy of political economy contained a systematic design
for welfare and economy. This included the manner in which a solution that loses
touch with private interests is able to adjust “the world and the nation” as external
However, Dazai’s conclusion was unable to absorb in a unilateral manner the
frame cost in order to advance institutionalization, and would overload public welfare.
Before creating an institutional design, what can morality in the social climate
constitute in the institutional performance among incentive structures? The activation,
based on moral recognition, widely needed the foundation of the institutional
design for public welfare and its spillover effect. In this sense, Dazai’s image of humankind
was that of an uncooperative situation, which was due to his belief that people
were unable to be endogenous in their learning function.
JEL classification numbers: B 11, H 11, N 35.
The purpose of this article is to examine the
changes in the role played by the government in
the market according to the theories of the
French political economy from the 1780s to the
1830s. These theories are generally regarded as
the precursors of “economics.” This article reveals
that these theories attempt to use the market
politically aiming to develop the people’s
“well-being” or “happiness,” and to redefine the
government’s role in the market. At the beginning
of nineteenth century, J. B. Say and C. Dunoyer
emphasized the political significance of a
free industrial market. According to them, it enables
the people’s “moeurs” to be independent and
self-disciplined, so as to establish a post-revolutionary
political order. Some contemporary political
economists such as J. Droz and M. T.
Duchâtel doubted the compatibility between the
accumulation of wealth and the development of
“happiness” of the people. They asserted the
need for elementary education as it leads to the
redistribution of “new wealth.” Moreover, social
economists from the 1830s, such as A. de Villeneuve-
Bargemont and E. Buret, emphatically
discussed the perverse effect of industrialization,
stating that the concentration of capital inevitably
caused the pauperization of most of the people.
They believed that the new role of the government
should be the “moralization” of the poor
through the organization of intermediate groups
such as religious associations, saving associations,
charity groups, mutual societies, and patriarchal
JEL classification numbers: B 25, B 31
This paper aims to study the characteristics of
the principles of Karl William Kapp’s cumulative
causation. While Kapp’s cumulative causation
is strongly influenced by that of Gunnar
Myrdal, it is not a model that merely explains
disequilibrium or the “vicious circle” phenomena.
Kapp was always interested in constructing a
model that addresses issues arising from the
compartmentalization of modern sciences.
Therefore, his critique of mainstream economics
should be understood in this context.
Kapp argued that the approaches of mainstream
economics were misleading because they
isolated economic systems from non-economic
elements. According to him, the trend toward the
compartmentalization of mainstream economics
could be inhibited by employing a cumulativecausation
approach. Kapp’s institutional economics,
which integrates cumulative causation,
is an approach that refutes the atomistic views
of the world proposed by mainstream economics.
Through these atomistic views, individuals
regarded as eternal; however, Kapp’s approach
regards them as transient phenomena appearing
in holistic dynamic processes. Furthermore, his
approach shows that a human being is an existence
with a multi-level construction.
A human being is a “bio-cultural” existence
that grows physically and personally, incorporating
material and energy from nature, and culture
from the society. Some societies ignore the latent
ability of their members and attempt to limit
them to the mould of a particular culture. Kapp
described this aspect by means of principles of
JEL classification numbers: B 25, B 31, Q 50.