The social benefit is a term to measure the social usefulness of the public investments. Benefits are termed direct benefits or indirect benefits. They are also classified into origin basis benefits or incidence basis benefits based on the calculation method. To calculate the social benefits generally means the calculation based on the origin basis. In this paper, we assume a closed economy, and analyse the case where the benefits on the incidence basis are greater than those on the origin basis. The assumed economy has external economies of the Marshallian type. The laissez-faire equilibrium is different from the social (Pareto) optimum equilibrium. The Pigouvian prescription of tax and subsidy is analysed to realize the Pareto optimum equilibrium through the market equilibrium. The system of tax and subsidy takes account of the Coase Theorem. We assume the public investment project of highway investments in the managed economy. The two types of benefits of the project are calculated, and compared with each other.

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Input-output analysis is the name given to an analytical framework developed by Leontief in the late 1930s. Originally, applications of the input-output model were carried out at national levels. More recently, interest in economic analysis at the regional level has led to modifications of the input-output model in order to deal with the peculiarities of regional problems.
There is an enormous amount of input-output work at the regional level. Examples of some of the earliest regional applications are found in the works by Moore and Petersen, Isard and Kuenne, Miller and/or Hirsch, etc. In this paper, some retrospects for each representative method have been done so as to clarify the remaining subjects and/or research areas in the near future.
We then refer to the outline of the accounting systems of interregional input-output analysis. The full interregional model, which was proposed by Isard, in which an n-sector r-region economy was portrayed by elements a_??_ (i.e., the flows of output from sector i in region r to sector j in region s) has rarely been implemented empirically. In their place, a number of modifications have been proposed so far, which are briefly explained in turn. Subsequently we explain, in this paper, how to define and measure an interregional feedback effect in multiregional settings, together with our calculated results based on our empirical studies.
Lastly, we refer to some problems and new directions of input-output analysis. Judging from the past empirical studies of the input-outout model at the regional level, it is clear that the importance of linking the input-output model with other parts of the social-economic system and/or environmental system should be enhanced. Thus, the role of the “regional science, ” which has the characteristic of interdisciplinary, open-minded and policy-oriented, might become more important in the forseeable future.

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Intraregional input-output analysis is widely used for measuring economic impacts which are derived from public investment. But in the usual intraregional input-output analysis, the Bounding-back effects that is a kind of intraregional repercussion effects have been ignored since the interregional trades are given externally. We have presented simple method which could measure interregional Bounding-back effects by using intraregional input-output table. Using this method within the context of intraregional analysis is equivalent to interregional input-output analysis, the method even uses intraregional input-output table only.
In this paper, we discuss the following two problems: In the first place, we pay attention to the intraregional input-output framework and the interregional trades, and discuss the structure of the bounding-back effects. And then, the economic impacts in a region which are measured by intraregional input-output analysis should be the same result as it which is measured by the method which divide a region into two regions, a method that we already have presented. But these results aren't the same. Then we pay attention to that matter. And consider the factor.

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There are a lot of studies which analyse the information economy and the information industry in the developed countries. But, a few in the developing countries. This paper tries to analyse the information economy and the information industry in Shanghai by the I/O method. Besed on the priciples about the division of information industries, we summarize information industries in Shanghai into 15 sectors. Besed on the division, we calculate and analyse the I/O table of Shanghai in 1987. Meanwhile, we compare Shanghai information industries with Japan information industries. We point out the characteristics of Shanghai information economy. Finally, we suggest some directions to which Shanghai information economy should be oriented.

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This paper aims at the estimation of telecommunications demand function and the derivation of the optimal pricing schedule for the service. While having vast studies on telecommunications demand worldwide, we have very few in Japan. It is because telecommunications services were supplied monopolistically and because telecommunications traffic data were not open in Japan. The traffic data have been offered since 1990, which are not sufficient for time series analysis. The only cross section analysis was made by Yamazaki, Imagawa and Mitomo in 1992. We extend their pioneer work to improve some deficiencies of it.
Demand externalities are conspicuous in telecommunications. When a new telecommunications system is to be set up, even an establishment that feels it convenient and is willing to subscribe will not do so alone. It will either subscribe with others simultaneously or agree to subscribe in anticipation of others joining. It is obvious that there is an intricate linkage between tariff, the volume of communication and the size of subscriber set. Our model has succeeded in addressing these relationships and incorporating the externalities as a distinct feature.
We propose two approaches for the modeling of demand founction; the macro-base and micro-base approaches. The former is based on the aggregated data of traffic and pays no attention to the behavior of each economic establishment. Although an empirical estimation is easy, it is not sufficient for further analysis because the externality cannot affect the consumption nor subscription level. The latter is based on heterogeneous subscribers and the mechanism of generating the demand externality is endogenous. The model is rather complicated, but it is easy to apply it to the optimization and welfare analysis.
The both types of demand function are estimated empirically. The optimal pricing schedule is derived using the latter type of demand function.

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In this paper, an applied general equilibrium model is proposed, which is for impact studies of regional policies. A characteristic of this model is to be introduced from probabilistic approach. At first, spatial price equilibrium model is reformulated from this approach. In this model, discrete choice theory is used for formulation of consumer activities. Secondly this spatial price equilibrium model is combined with some models in which household and firm activities are formulated, so that an applied general equilibrium model is introduced. The solution of this model is calculated by fixed point algorism. At last, a test on the movement of this model is conducted.

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In the information-oriented modern society, the economic activities are closely related with the telecommunication and information activities. The data to be informed and the media to exchange the information both have been increased. The experience in the developing countries suggests that the telecommunication development is a key to the economic development. The purpose of this study is to analyse the impacts of the telecommunication development on the economic growth in China in order to propose the plan for the development of the telecommunication sectors. We will specify an econometric model for the economic development in China. The simulation results have shown that China is breaking into a new age of the economic system, and the demand for telecommunication services will increase greatly. Especially, the increase in the demand will be at its peak from now on to the year of 2000, and the telegraph services will be replaced by other telecommunication media. In order to improve the development of the gross economy, the investments to the telecommunication sectors, which includes those into the telecommunication equipment and network facilities, have to be planned and controlled suitably. Since the speed of the development of commerce, transportation and telecommunication sectors are all faster than the speed of the gross economy, it is also necessary to take account of the changes in the industrial structure.

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The Japanese real estate industry is stylized as a vertically related industry under oloigopoly in which the landowners are considered as the upstreamers while the real estate agents are the downstreamers. The downstreamer is an input demander, who considers backward integration with the upstream landowner(s). The so-called fixed proportions in production is assumed to apply to the downstreamers.
The questions of particular interest to the present paper include what happens to the individual profit, aggregate profit, and social surplus after integration, under what conditions. After a brief literature review in Section 2, Section 3 of the paper will show 1) the supply increases with backward integration, and 2) the output effect is smaller when one downstreamer integrates backward with plural upstreamers than it is when one-to one integration is contemplated. Section 4 in turn will demonstrate that economic welfare tends to increase with backward integration, but the effect of backward integration on the joint profits and on social surplus is not definitive in general. However, each (additional) backward integration generally increases the joint profit for the merged.
In sharp contrast, however, the profit for the remaining firms and industry profit as well can be shown to decrease with successive backward integrations. There exist incentives therefore for the excluded firms to integrate to recover their lost profit. Should all such inadvertent integrations have taken place, the paper nevertheless stresses that an alternative strategy still exists for the group of enterprises which cannot go back to the original state of nonintegration. The proposed strategy, we will show, is to form one-to-one backward integrations by establishing more downstream sections.

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In general, it is understood that a city development is its space expansion. In this study, we make some Potential Contour Maps using land street price. These maps show a variety of land use in a city.
We considered close relationship between the contour map and urban facilities, that is river, canal, railway, highway and so on. Through analyzing our maps, we find some characteristics. For instance, in Sapporo, The Sosei River flows through the eastern part of the city center and JR (Japan Reilway Company) Hakodate main line passes through the northern part of it. The existences of the river and the railway transform the frame of contour lines on the map of Sapporo. And in the other cities, Sendai, Hiroshima, and Fukuoka city, They particularly depend on the rivers. In fact, the city center of Sapporo spread toward a direction to which the river flows and where Contour line trasformed.
Consequently we were able to recognize availavility of potential maps and the river decided the contour lines.

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In Japan, public transportation system in many areas has suffered a severe decline with the decrease in population and the advance of motorization. There are a lot of elderly people who are unable to drive. When they go out, they are often obliged to use extremely inconvenient public transportation systems, or walk or go by bicycles if their destinations are relatively near, or have someone driven for them. Sometimes, they have to abandon planned outings for minor physical, climatic, or other reasons (“non-realized travel”).
It is reasonable to conclude that limited mobility is increasing among the elderly because of a decline in the public transportation system which is commonly the only choice for non-drivers. The issue how to make the public transportaion services offer an appropriate level of mobility for elderly non-drivers.
Thus, this study, at first, investigates the present situation by using the data of person trip survey which was taken in October 1989 in the Ryomo Region (including parts of Gunma Prefecture and Tochigi Prefecture) of Japan. Why we use this data base is because the average number of cars per family in Gunma Prefecture and Tochigi Prefecture are ranked in the first and the second respectively in Japan.
Furthermore, the multiple regression analyses among the mobility and the service level of the public transportation system, the status of the elderly are carried out. In the study, the mobility means the percentage of the people having trips, the net trip number per person, and the travel time in one day. And the service level is represented by two kinds of indexes in geography and frequency. As the results, some suggestions are given for improving the public transportation system.

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We derive the dynamic Nash equilibrium path of the toll rate of the bridge which connects the mainland and the island. The game is played between the bridge authority and the firm in the island.
The firm in the island is assumed to be owned by individuals of the island, that is, the behavior of the firm is given as the optimal behavior of the island residents. The island exports their product to the mainland and import goods from the mainland. The island and the mainland trade goods of their products by using the bridge. The time path of the export and the import, i.e., the island's consumptions of the imported goods and the domestic goods, are determined so as to maximize the discounted sum of the future utilities of the individuals of the island, given the time path of the toll rates determined by the bridge authourity. At the same time, the optimal time path of the investment of the flrm in the island is determined.
The bridge authority determines the optimal time path of the toll rate of the bridge so as to maximize the discounted sum of the future utilities of the island residents. The constraint of the authority is that the construction cost of the bridge should be refund by the toll revenue of the bridg in finite periods. Also, the authority takes the time path of the investment of the island as given.
We derive that when the utility function of the island is strictly concave CES type, the equilibrium path of the toll rate is decreasing in time.

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We first attempt to survey articles of tourismology and considering some views of Hoover and Nishioka, point out that location theory can be applied to tourism. Next, by paying attention to Ökonomische Theorie des Tourismus by von Böventer (1989), we indicate that the theory of tourism location has a close relationship to each theory of Thünen (1826) and Alonso (1964). Then it is supposed that the degree of spatial attraction to the tourism resource (i.e., the elasticity of the tourist's utility with respect to the distance from the central place of the tourism resource) is measured by which tourism hotel the tourist chooses within the tourism region from the standpoint of the bid rent theory based on Alonso (1964). Moreover by specifying the utility function of the tourist, we derive a function to measure the degree of spatial attraction. Finally, we attempt a simulation analysis concerning items of the tourist's budget and the size of the tourism region by making use of this function. The tourist living in a further region from the tourism resource has stronger spatial attractiveness to the tourism resource and if the tourism region is expanded by bigger development, the degree of spatial attraction to the tourism resource falls in each residential location.

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Okinawa, is located in the south east end of Japan, has some paticular issues, for examples, having been waseted by World War II, after the end of the war having been occupied by USA for twenty years, remaining the vast USAF bases and being composed of many islands.
On the other hand, she has subtropical nature, the abundant sun energy and marine resources. Okinawa economy mainly depends on the public investment and the consumption by tourists.
I take up four outside economic factors, rising economic growth in Okinawa, the Public finance transfers (G), the tourism revenues (Tu), the revenues from USAF bases and the compensation of employees outside of Okinawa (O).
I analize the rerationship between these four factors and the economic growth in Okinawa.
1. Saturation Equation Approach
I assume a saturation equation for analizing the relation (A/Y) and (Y/No/GDP/N). According (1), the minimum level for keeping (Y/No) postitive is calculated 29.3%. And this saturation equation shows that the limit of economic growth by outside economic factors is 74.8%.
Y: Gross Prefectural Product (constant), No: Population in Okinawa, GDP: Gross Domestic Product, N: Population in Japan, A=G+Tu+O+(the revenues from USAF bases)
2. Simultaneous econometric model approach
And I analize this problem by other method, the simultaneous econometric model of six equations by data of 1980-1990 for middle range pridicting.
$: exchange rate, U: unemployement rate, D85: 1985=1 dummy
According to the result of simulatation by this econometric model, a gap of per. capita Gross Domestic Product between in Okinawa and All Japan is shortened 10% by making 1.5 times as large each tourism revenues and the public finance transfers.

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Environmental problems are becoming complex and expanding. In such situation, it is important to make planning approaches for resolving not only present but also future environmental problems. Most of the recent environmental problems are caused by activities in urbanized areas which include citizens' life as well as different industrial activities. Thus, the new approach requires not only traditional measures of regulation but also such new ones as economic or planning measures for changing the social system and citizens' life styles.
Regional environmental management plans have been made in some local governments since around 1980 in Japan. But these plans are open to question as they are not made under any kind of law. Besides this, we can point out that these plans were not aware of citizen participation to these plans in the planning processes and implementation of them.
Based on this consideration, the purpose of this paper is to clarify the problems of present regional environmental plans in Japan. Firstly, we collected the every plans concerning environment made by autonomies, and we classified them into three groups. These are environmental conservation plan, amenity-town plan environmental management plan.
We found the major group of environmental plans have been changing during this period. Most of the regional environmental plans which were made in the early part of 1980s were simply made for conserving the natural environments. But recently regional environmental management plans which have the purposes of creating amenity as well as solving environmental problems are dominant. This change corresponds to the progress of urbanization and the change of the nature of environmental problems. Regional environmental management plans have much broader views for environment than the other plans such as environmental conservation plans or amenity-town plans.
The regional environmental management plans should be made through citizen participation. It is important to promote communication between the planning body and the citizens for mutual understanding of plan itself and thier environment.
But we found that some reports of regional environmental plans were written insufficiently from the view point of better communication with the citizens. In the case of the environmental management plans, they are more sufficient in this point than amenity-town plans and environmental conservation plans. But even in the case of environmental management plans, the categories such as “action program”, “description of present situation of the area” and “the outline of the plan” which are necessary for citizen participation to these plans are satisfied about 50% of the reports of them. Moreover, the other categories are satisfied only about 10 to 20%. Thus, it is necessary to make the planning reports much clearer. Further more, a lot of effort should be made to give the citizens much better access to these reports.

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1. After distributing questionnaires in February of 1992 for a survey in the Kanto area on the flow of information and the use of information media, we decided to examine a feeling expressed by its respondents that they had insufficient access to information and images that they have about the information media. We then examined the regional characteristics behind the nature of the field of information, relations to the media.
2. While the feeling that there is insufficient access to information - especially with respect to local news-may be considered to be one of the factors behind the feeling that there is an information gap, the Kanto area may be distinguished from other regions in that only a small percentage of the respondents cited television as the appropriate medium.
3. When one looks at the areas for which there is insufficient access to information it can be seen that as a general trend Tokyo and the surrounding areas displays a relatively higher lack of information of the community, while regions removed from the capital have a similar lack of news related to personal interests. In addition to this there may also be seen differences due to environmental and population-driven factors. And when one looks at cities in order of their sizes it can be seen that while in the hub of areas removed from Tokyo there exists a feeling that there is insufficient access to entertainment news, the feeling in Tokyo and its surrounding urban areas is that the lack is one of information pertaining to the services by local government. Finally, it should be noted that while rural areas removed from Tokyo do not express a particularly sharp lack of information, but these regions lack of access to information on local administrative services in comparison.
4. When one looks at the trends towards the favored media for obtaining news by region, it can be seen that newspapers is the main source of information in the neighboring area of prefectural office and CATV is the primary source in Tokyo and surrounding urban areas while books and flyers are of comparatively greater importance in remote regions from the capital. And when one looks at the comparison of cities by the order of their sizes, it can be seen that mail and CATV may be viewed in urban areas near Tokyo while there is a relatively higher percentage of reliance on television in urban areas removed from Tokyo and CATV in rural regions. However, while it can be seen that the percentage of respondents in rural areas naming media other than flyers as sources of information is rather small in absolute terms, the truth of the matter remains that there is no reasonable alternative media to serve as a source of the necessary information.

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Two aspects of the Argentine regional economic structure are presented. The first is the performance of the nation's two principal sectors: the industrial sector and the agricultural sector to shed some light on macroeconomic issues with stress on geographic and regional features. The second aspect to be proved is Argentina's economic recovery since early 1991 and the current economic development policy to prognosticate “feasible regional impacts” of the privatization program on three counts: institutional stability, investment growth and efficiency in resource allocation. After a long period of stagnation, economic isolation and hiper inflation which have plagued the nation, Argentina has made significant progress in the control of the chronic inflation, at present in line with international levels. The capital inflows are also significant as investment has become the basic tool for economic growth. Increases in investment since the implementation of the Convertibility Plan along with the Economic Deregulation and Privatization of Public Entities suggest that capital accumulation is likely to continue. The continuation of drastic fiscal, administrative and social welfare reforms will provide the framework for strengthening both the state and private enterprises in their respective functions and genuine responsabilities of serving the community.

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The price of land rose quite rapidly in Japan in the period 1986 to 1990. It was particularly remarkable in metropolitan areas. In this period, the number of the manufacturing industries also decreased rapidly in the ward area of Tokyo metropolis.
Based on the traditional theory of industrial location, it can be said that the decrease of number of industrial location in Tokyo metropolis was caused by the external diseconomy generated by the rise of the price of land. From the side of the accrual accounting, it can also be said that the rise of the price of land brought latent profits to enterprises as an external economy.
In this paper, two kinds of time seriese data, the change of the industrial location from 1960 to 1990 and the change of the land use from 1977 to 1991, both of Tokyo metropolis, are provided to study the relation between these time series and the corresponding time series of the price of land.
It is observed that the behavior of the industrial location channged depending on the level of the land price. In particular, it is clearly seen that the industrial location was active when the level of the land price was low and that the sizes in terms of the number of employee of newly locating manufacturing industries decresed as the land price increased. The extremely high level of recent land price almost prohibited the location of any kind of manufacturing industry in Tokyo metropolice.
It is further observed that the manufacturers tended to sell their properties when the land price went up and that they acted quite sensitively to the change of the price level.

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The “just-in-time logistics system” or the frequent and small-lot delivery system, has been said to be a cause of traffic jams and environmental pollution. The present report is an attempt to ascertain the status quo and the overall perspective of the problem together with its policy implications. The research was conducted by questionnaire sent to wholesalers, trucking companies and manufacturers operating in the field of processed foodstuffs, and the results suggest that the just-in-time logistics system comprises the two totally different elements of “frequent delivery” and “small-lot delivery”. Of these two elements, small-lot delivery, which cannot be realized without effecting a change in the social system, is considered to be more structural than frequent delivery whose optimum level will nevertheless be sought through a market mechanism under the strengthened traffic and environmental regulations. In order to ensure the efficiency of small-lot delivery, transportation systems should shift from chartered trucking to consolidated trucking. Since this inevitably requires small trucking companies to construct sorting facilities, logistics centers and distribution centers should also be built as the “social capital” aspect of social policy.

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This is a slightly abridged version of my Introduction to the Festschrift in honor of our esteemed international colleague and friend, Mel Greenhut. I have had the pleasure of editing it jointly with Jacques Thisse. The book is titled Does Economic Space Matter? and is now available in print from Macmillan Press, and also from St. Martin's Press. What the reader can expect from this book is a wellfocused discussion of one single question: if, why or in what sense “economic space” matters in economic theory. For this is exactly the question Mel raised in the 1950s and has since struggled with. Needless to say, however, sheer addition of one more analytical variable to the tool box of economics (which already appears complicated enough) may not help economics become sufficiently more realistic. Each contribution to the book therefore has been requested to seek more simplicity than complexity in demonstrating “yes” or “no” to Mel's pilgrimage to “spatial economics”. The book comprises three parts in twenty chapters beside a special foreword by our own esteemed colleague, Hisao Nishioka. I would like to introduce briefly only a small part of the book to give the readers a feel for it and the subject matter of economic space that it addresses.
And its message is that economic space does matter. As once observed by W. Warntz, ‘space is a tyrant and distances enforce his rule’. The tyrant has a variety of faces, however. It has a ferocious face as a public nuisance. It also has a beneficial face as a private shield to entry or trespassing. It has a face as a congestible public good possessing the combined properties of ‘rivalry in consumption’ and ‘nonexcludability in consumption’. It has a face as a noncongestible public good possessing no ‘rivalry in consumption’, but may nevertheless be provided exclusively. These multifaceted economic space require theoretical scrutiny, as demonstrated by the book.

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