The purpose of this study was to incorporate altruism from children to parents in a two-period overlapping generation model referred as joy-of-giving model. Parents derive utility from the size of the bequests they leave to their children, so combining both ascending and descending altruism, leads to a new form of altruism known as two-sided altruism or paternalistic altruism. Intergenerational transfers operate in both directions, from children to parents (intra-family income transfers for nursing care) and from parents to children (bequests), to examine the long-run equilibrium of the model with two-sides and to study the effects of the degree of both altruism and fiscal policies on the long-run equilibrium by comparative static analysis that assumes a small open economy for easy examination. In addition to this purpose, the objective was to study the effect of pension systems on long-run equilibrium and to analyze optimal estate taxation in a steady state. Concretely, we considered two pension systems: a lump-sum pay-as-you-go pension system and a modified pay-as-you-go pension system, in which benefits are financed by contributions and a part of the estimated taxation levied on the parental generation, incorporates the rest of public expenditures into the pension system to maintain a balanced budget. This study derived the following results. First, the degree of both altruism affects on intra-family transfers to their parents in the steady state showed altruism to children has a negative effect, whereas altruism to parents has positive. Moreover, the effect of the degree of both altruisms on bequests in the steady state is different according to the relationships of growth rates in a population, interest rates and types of pension systems. Second, the effects of increases in the contributions to intra-family transfers and bequests in the steady state depend on not only differences in the pension system but also the relationship of the growth rate of a population and interest rates. Otherwise, the effect of estate taxation on intra-family transfers is the same between the differences in a pension system in a steady state. In other words, in the lump-sum pay-as-you-go pension system, an increase in estate taxation has negative effects on both bequests and intra-family transfers in the steady state. On the other hand, in a modified pay-as-you-go pension system, increases in estate taxation have negative effects on intra-family transfers in the steady state. Finally, in a modified pay-as-you-go pension system, optimal estate taxation arises with decreases in the ratio for spending of public expenditures in the steady state. Throughout the paper, paternalism effects are shown and the above-mentioned results support the model with two-sided altruism.
The Pacific Coast Tohoku Earthquake with a Magnitude of 9.0 (named by the Japan Meteorological Agency) and hypocenter at Sanriku-oki occurred on March 11, 2011. The scale and affected range greatly exceeded the assumptions of the government and common sense of the people. In a catastrophic and wide-range multiple disaster, the amount of direct economic damage is strongly influenced by differences in features of each self-governing body such as composition of local economies, composite degree of disasters such as tsunami earthquakes, and characteristics and strengths of various disasters. Moreover, disasters are different, so countermeasures and their effects also differ. When considering reconstruction of stricken areas faced with repetitive tsunami risks, it is necessary to take into consideration influences stemming from differences in local features and disaster characteristics to grasp economic damage (both from direct and indirect damages) quickly and correctly. Also to reconstruct the sustainability of the local economy in stricken areas, reconstruction plans must consider both sides of the advantages for a compact city and mitigated economic damage against an earthquake disaster. An econometric approach to estimate the economic damage attains a correct estimation of economic damage, but requires time and expenses for conducting large-scale investigations and totaling the vast quantity of data. Moreover, such an approach cannot divide the amount of economic damage by natural disaster type, so economic damage for every disaster cannot be acquired. Considering the points above, to form a proper reconstruction plan, an analysis method for reconstruction planning that considers estimation techniques for the amount of economic damage caused by the next expected earthquake and tsunami, and the amount of mitigated economic loss by countermeasures must be established. Prior to announcement of the detailed disaster data for the Tohoku Earthquake, we analyzed and compared data on economic damage, reconstruction plans, and reconstruction processes of 15 earthquakes (including 3 tsunami earthquakes) since 1960. In particular, we analyzed features of the amount of direct economic damages by a tsunami. Then using the data of the Chilean Earthquake Tsunami that influenced Japan with a tsunami but not an earthquake in 1960 the study proposed a continuity compensation formula whose influential factors were the tsunami height and the relationship between the amount of direct economic damage by the tsunami and the financial resources of the people. Moreover, we proposed a method for analysis of reconstruction planning that makes use of a formula to estimate the amount of direct economic damage, and conducted a basic study toward evaluating the effects of reconstruction plans after the Tohoku Earthquake.
In the last decade, and following the publication of Brundtland’s report on sustainable development, the number of books and papers with the word “sustainable” in their title has grown enormously. However, the word is used in many different ways. The elasticity of the concept has given rise to questions about what it is supposed to mean: the sustainability of what, for whom, for how long, and why ? This paper aims to demonstrate the components of well-being which must be sustainable. To do this, the meaning of sustainability is first clarified. Next, it is shown that well-being consists of multiple factors;thus, well-being is defined as hierarchical in this paper. Then sustainability is considered from the viewpoint of the fundamental theory of welfare economics. In particular, it is shown that there should be a much greater focus on both intra-generational and inter-generational equity in the compensation principle than is commonly the case. It is pointed out that multiple criteria analysis is a promising method for addressing a wide range of well-being simultaneously. Two applications of multiple criteria analysis are presented: one is to rectify the vulnerability of water utilization in Bangladesh, and the other is to improve the waterside environmental management of the Kamo River in Kyoto city, Japan. In both cases, people’s well-being is treated as being multifaceted. With regard to Bangladesh, dealing with the first level of well-being involves remedying the vulnerability of water utilization, but it is emphasized that it is necessary to consider social well-being, including not only adequate information on water quality but also people’s satisfaction with respect to income, family and so on. For the Kamo River, it is shown that management of the waterside environment includes the improvement of people’s life conditions such as the survivability of their region through constructing a regional environmental valuation. Finally, it is suggested that a hierarchical multiple criteria analysis be applied to improve a regional welfare problem, as people’s well-being is considered to have a hierarchical constitution.
The number of municipalities in Japan has decreased from 3,232 in 1999 to 1,820 in 2006 because of municipal mergers, called Heisei-no-Daigappei. The previous works on municipal mergers reported that the scale effect of expenditures (a U shaped per capita expenditure curve) are observed in Japan, and concluded that it might be achieved the reduction of expenditure by municipal mergers. However there are few researches to analyze the expenditure changes in Heisei-no-Daigappei. This paper estimates the scale effect of expenditures and the effects of municipal mergers in Japan’s local public expenditure. In order to consider the expenditure of municipal mergers, our new approach is to apply unique index called financial index classified by similar types. First, the expenditure structure is found to be an “inverse” U shaped in our estimation using fixed effect panel analysis on Japanese municipalities. The U shape which has been observed in previous works seems to be the fixed effect. The U shape on previous works might be caused by the miss specification or omitted variable problem. Second, we mainly found out that municipalities achieved reductions in their total expenditures with mergers, and the pace of reduction would be diminished after the elapse of a certain period of time. According to our results, the expenditure of merged municipality declined about 7.8% in the first year, and the reduction rate became about 11% in a few year after the merged year.
After the March 11 Tohoku Earthquake and Fukushima Nuclear Power Plant Disaster, both the public and private sectors have been struggling in the recovery process. Globalization of economic activities has brought not only benefits to business but also many difficulties. Social enterprises can be regarded as a new model of modern nonprofit organizations. They are working to challenge and solve the various social problems we face today, such as environmental and well-being issues, the inequality of educational opportunity, and disparity in income distribution. The aim of this study is to survey the performance of social enterprises and examine how they solve various social problems. Although prompt action must be taken to overcome these problems, government by itself cannot resolve them satisfactorily, so social enterprises have recently stepped in and are changing the boundaries. They supply not only social services but also job opportunities to those at the bottom of the social ladder. From the viewpoint of sustainability, to accomplish their various targets, they need to earn through their own business. They also need to receive contributions or investment to continue their activities. Reforming the donation tax system and revising the NPO certification standards (including the public support test) would help while solutions are being worked out. Hindering social enterprises research at present is the lack of consensus on the definition of social enterprises: the more articles published on them, the more definitions of them appear in the literature. This lack of consensus is not helping the optimal use of data stored in research database. More discussions to reach a consensus on definitions and improved usability of the database will help promote the potential of social enterprises research in the near future.
This study examined the characteristics of rural business growth in hilly and mountainous areas by focusing on areas falling within the old municipalities of Shimane, Wakayama, Kochi and Oita Prefectures. Using the Malmquist Index method for data obtained by the output-oriented data envelopment analysis model, we examined farm productivity from 2000 to 2010 in terms of human capital, activities and output in farming. The results confirmed that farm productivity changed primarily in the context of processing of agricultural products, running guest houses and direct selling of farm products by farm households. Further, many municipalities began performing increasingly popular agricultural activities during the period. The results also clarify that competition and cooperation among farmers, diversity of farmers and change in agricultural employment play important roles in rural business management in hilly and mountainous areas.
In this study we used a computable general equilibrium (CGE) model, incorporating the 2007 social accounting matrix (SAM) data for Syria, to assess the impact of a reduction in tariffs on agricultural products and food industry products in urban and rural households of Syria. The model used was based on Hosoe’s standard CGE model, which has been modified to incorporate the elements of Syrian SAM data. The simulation assumed that the tariffs on agricultural and food industry products were eliminated. To determine the impact of the elimination of tariffs on household income we utilized the Theil index for income inequality. The results of the study suggest that with the elimination of tariffs on agricultural and food industry products: (a) the welfare of households generally improves; (b) although total household income increases, the income inequality increases but not greatly. Overall, the results suggest that the elimination of tariffs on agricultural and food industry products would be beneficial for Syrian households.
Today, local communities have disintegrated in urban areas. This paper analyzes, based on the results of a questionnaire and interview survey, the fact that local public cultural facilities play a vital role in fostering the spiritual culture unique to each region by forming the core of local community regeneration. In areas with high population mobility, it is difficult to develop and sustain unique local cultures. Therefore, public cultural centers located in ordinance-designated cities and their environs in the Tokyo, Kinki and Nagoya metropolitan areas were surveyed. Annual population migration rate ((immigration + emigration) / population in the survey year) was approximately 15% in 1990, when community disintegration and community development began drawing nationwide attention and became key policy issues for the central government and local governments across Japan. The survey found that many projects were implemented: 1) to promote interaction and cooperation among residents, which is essential for community regeneration;and 2) to nurture a culture peculiar to the region that would lead to the development of a unique spiritual culture in the region. Creating something that will evolve into a unique regional spiritual culture requires a long time to instill into the minds of the residents. Looking at the duration of the projects, 50% of 34 projects surveyed lasted more than five years. Cultural centers should place great importance on maintaining close relationships with residents. In the case of cultural projects, considerable autonomy and discretion is exercised in planning (including content planning) and implementation. Therefore, a project’s success relies largely on the abilities of staff members who play a central role in the project. In urban areas where distinctive spiritual culture has disappeared or been transformed, residents undertake new cultural projects to replace traditional events and activities. Public cultural centers are places for nurturing spiritual culture and conversely, help prevent disintegration of communities.