Economic Affairs

Professor Hidehiko Ichimura of the University of Tokyo will share recent results from his research on the health of older adults and the retirement process in Japan. His research draws upon a unique data source, the Japanese Study of Aging and Retirement (JSTAR). This rich dataset provides information on how middle-aged and elderly Japanese live in terms of economic, social, and health outcomes, and how these interact with their family status. The JSTAR project aims to provide longitudinal data enabling detailed policy-relevant comparisons to other industrialized countries (e.g. the Survey on Health, Aging and Retirement in Europe, the US Health and Retirement Study, the English Longitudinal Study on Aging, and similar surveys now launched in Korea, China, and India).

Professor Ichimura received his BA in economics from Osaka University in 1981 and his Ph.D. in economics from the Massachusetts Institute of Technology (MIT) in 1988. He has taught at the University of Minnesota, the University of Pittsburgh, and University College London. He is now Professor in the Graduate School of Public Policy and Graduate School of Economics at the University of Tokyo. 

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Hidehiko Ichimura Professor in the Graduate School of Public Policy and Graduate School of Economics Speaker University of Tokyo
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Asian universities are rising in world university rankings, with schools in emerging Asian countries such as China, Taiwan, and South Korea recently making strong gains. Six universities in South Korea alone placed among the top 400 in the world in the 2012 Times Higher Education rankings. Competition within Asia is also intensifying. 

The shift of relative economic power from the West to the East suggests that Asian universities will continue their ascendancy, but progress brings with it growing pains. In his talk, Dr. Jeong, president of one of Korea’s premier universities, will discuss the pressures that Korean universities face and their efforts to reform and adjust to new times and new challenges.

Dr. Jeong Kap-Young is president and a professor of economics at Yonsei University. He holds a B.A. from Yonsei University, an M.A. from the University of Pennsylvania, and an M.A. and a Ph.D. from Cornell University, all in economics. His research interests are in industrial organization and public policy, applied microeconomic theory, and East Asian economies. He has authored numerous works, and served as adviser to the Korean government.

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Jeong Kap-Young President, Yonsei University, Korea Speaker
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Abstract:

This talk will unveil the story of Taiwan’s economic transformation between 1949 and 1960, as Chiang Kai-shek and his Nationalist leaders turned away from a command economy to build a market economy more productive than any in Chinese history.

The talk gives special attention to how a small group ofpolitical and economic leaders began to formulate and later implement a bold new economic vision for Taiwan. In the process, they embraced institutional and organizational innovations that led to a dismantling of Taiwan's earlier centralized command economy and the growth of a new market system.

Much information in this research was obtained from historical papers that were recently made available at the Hoover Institution of Stanford University: the diaries of Chiang Kai-shek, Kuomintang party archives, and personal papers of Kuomintang leaders. It also makes use of first-hand oral interviews with former Nationalist officials and economists.

 

Speaker Bio:

Tai-chun Kuo is Research Fellow at the Hoover Institution, Stanford University. She was a Visiting Lecturer at the Center for East Asian Studies, Stanford University (2003) and Associate Professor at the Graduate Institute of American Studies, Tamkang University (Taiwan, 1997-2000). Prior to these positions, she served as Press Secretary to the President of the Republic of China (1990-1995), Deputy Director-General of the First Bureau of the Presidential Office (1989-1997), and Director of the ROC Government Information Office in Boston (1987-1988).

Outside of her own research, since 2003 she has assisted the Hoover Institution Archives in developing its Modern China Archives and Special Collections, including Kuomintang (Nationalist) party archives, diaries of Chiang Kai-shek and Chiang Ching-kuo, personal papers of T. V. Soong, H. H. K’ung, and other leading Chinese individuals.

Her major publications include Taiwan's Economic Transformation: Leadership, Property Rights, and Institutional Change; T. V. Soong in Modern Chinese History, China’s Quest for Unification, National Security, and Modernization; Breaking with the Past: China’s First Market Economy; Watching Communist China, 1949-79: A Methodological Review of China Studies in the United States of America and Taiwan; and The Power and Personality of Mao Tse-tung, among others.

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Tai-chun Kuo Research Fellow Speaker the Hoover Institution, Stanford University
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Dr. Suzuki will speak about improving nuclear safety and security in Japan after the Fukushima Dai-ichi accident. Reflecting on official and independent reports, Suzuki will draw lessons for improving four key aspects of the nuclear system: emergency response, transparency, regulatory governance, and international cooperation. Suzuki’s remarks are unaffiliated with the Japan Atomic Energy Commission.


About the speaker: Dr. Tatsujiro Suzuki is currently a Vice Chairman of the Japan Atomic Energy Commission. Previously, he was the Associate Vice President of the Central Research Institute of Electric Power Industry (CRIEPI), Japan, and a Senior Research Fellow at the Institute of Energy Economics of Japan. He was a visiting professor of the Graduate School of Public Policy of the University of Tokyo. Dr. Suzuki holds a Ph.D. in nuclear engineering from the University of Tokyo and MS in Technology and Policy from Massachusetts Institute of Technology, USA. Suzuki is a former member of the Pugwash Council.

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Tatsujiro Suzuki Vice Chairman Speaker Japan Atomic Energy Commission
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In advance of the third presidential debate, Freeman Spogli Institute center directors thought about key international policy issues that need addressing by presidential candidates Barak Obama and Mitt Romney. FSE center director Rosamond L. Naylor posed the question below among a list of other suggested FSI foreign policy questions to debate:

Should our government help American farmers cope with climate impacts on food production, and should this assistance be extended to other countries – particularly poor countries – whose food production is also threatened by climate variability and climate change?

What to listen for: Most representatives in Congress would like to eliminate government handouts, and many would also like to turn away from any discussion of climate change. Yet this year, U.S. taxpayers are set to pay up to $20 billion to farmers for crop insurance after extreme drought and heat conditions damaged yields in the Midwest.

With the 2012 farm bill stalled in Congress, the candidates need to be clear about whether they support government subsidized crop insurance for American farmers. They should also articulate their views on climate threats to food production in the U.S. and abroad.

Without a substantial crop insurance program, American farmers will face serious risks of income losses and loan defaults. And without foreign assistance for climate adaptation, the number of people going hungry could well exceed 15 percent of the world's population. 

~Rosamond L. Naylor, director of the Center on Food Security and the Environment 

 

Inspired by the spirit of debate, FSE fellows took the opportunity to pose a few additional questions for the candidates. 

Questions from FSE deputy director Walter P. Falcon:

The US now uses more that 40% of its corn crop for biofuel. While some argue this contributes to long-term energy independence, others note that ethanol mandates, along with unfavorable weather, can contribute to higher and more volatile food prices like those seen in recent years. Do you regard the US policy emphasis on biofuels, especially corn-based ethanol, as being a successful program to date? Have the benefits from biofuels outweighed the negative impacts on higher food costs around the world, and do you believe that mandates continue to be the most appropriate policy going forward?

One of the largest agricultural programs in the US is in the form of food stamps to poor consumers. Would you prefer to cap, perhaps even eliminate, the food stamp (SNAP) program? Would you prefer to replace it with a direct cash transfer system? Whom do you think generally should qualify either for food stamps or cash transfers?

Questions from FSE associate director David Lobell:

A major initiative of the Obama Administration has been Feed the Future, which aims at improving food security in other countries. Is the U.S. focused sufficiently on hunger in other parts of the world? Have actions matched rhetoric? Is a $3 billion expenditure on this initiative the right sum in an era of large fiscal deficits in the U.S.?

Question from research scholar Bill Burke:

The United States is viewed by many as a world leader, but its role in foreign assistance is contentious. In dollar terms, the United States consistently gives more foreign assistance than any other donor nation. In 2012, for example, the U.S. provided nearly 34 billion dollars, or more than twice as much as any other country. On the other hand, many criticize the U.S. for contributing relatively little in comparison to other countries when donations are measured as a share of GDP. Some also point out that much of what is labeled foreign assistance is actually military or security assistance, and does not contribute directly towards economic development. Does the U.S. spend too little or too much on foreign assistance, and should a greater proportion of U.S. funding go directly towards poverty reduction and food security?

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China and some other Asian countries have experienced a large surplus of men of marriageable age. The existing literature studies the impact of sex imbalance using aggregate sex ratios, such as at the county, city, or province level. However, these studies may miss important impacts on health and behavior because the relevance of surplus sons to family decisions mainly stems from pressure conveyed through social interactions with the local reference group.

This paper draws from unique social network data, collected from households' long-term spontaneous gift exchange records (li dan), combined with household panel data from 18 Chinese villages to explore the prevalence of men's localized pressure to get married. The surveyed villages are home to Chinese ethnic minorities, which largely circumvents endogenous fertility decisions on the first-born child due to the implementation of One Child Policy and its associated relaxations afterwards. To identify the effect of pressure to find wives for their sons on parental risky behavior, we focus on comparing families with a first-born boy versus a first-born girl and distinguish the network spillover effect from the direct effect.

The spatial econometric decompositions suggest that the pressure mainly originates from a few friends with unmarried sons and unbalanced sex ratios in the friendship networks, though own village sex ratio and having an unmarried son also affects parental risk-taking behavior. The results are consistent across specifications allowing for long-run and short-run effects. We also find similar patterns for parental working hours, their likelihood to engage in entrepreneurial activities and decision to migrate. In contrast, parents with a daughter do not demonstrate this pattern. Since the sex ratio imbalance in China will probably worsen in the next decade, disentangling the real sources of marriage market pressure may help design policies to improve parental well-being.

Dr. Xi Chen's main research interests involve health economics and development economics in the developing contexts. He recently completed his PhD in applied economics at Cornell. His research seeks to better understand how social interactions affect health behavior and outcomes, how socioeconomic status drives social competition. Most of his current work draws on primary data from China and secondary data from India and Indonesia.

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Xi Chen Assistant Professor Speaker Department of Health Policy and Management Yale School of Public Health
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About the seminar

Does labor mobility matter for innovation more in some countries than in others? Based on theoretical considerations of the economic systems literature we argue that labor flexibility has different innovation effects depending on national-level institutions. This talk further argues that institutional constraints may be encountered by creating functional equivalents. The analysis is based on career histories in the videogames industry. The videogames industry is structured differently between the best performing countries U.S. and Japan. This raises two issues on human capital diversity: How does composition of human capital affect innovation? How do people react towards institutional constraints in the labor market? Contrasting approaches on the systematic relations between the structure of labor markets and the dynamics of innovation is first introduced, the seminar will then present an empirical case which is based on the career histories of 39.439 videogame developers between 1999 and 2009.

This talk is part of the seminar series hosted by by the Stanford Project on Japanese Entrepreneurship (STAJE) at Stanford Program on Regions of Innovation and Entrepreneurship, Stanford Graduate School of Business, and sponsored by The Miner Foundation.

About the speaker

Cornelia Storz is Professor for the Study of Economic Institutions and East Asian Development at the University of Frankfurt, Faculty of Economics and Business Administration, and affiliated to the Interdisciplinary Centre for East Asian Studies (IZO). She is associate researcher of the EHESS, Paris.

Her research focuses on comparative institutional analysis, innovation and industry emergence. With scholarships of JSPS, JILPT, BMBF and others she has been invited to the University of Tokyo, the Japan Institute for Labour Policy and Training, the RIETI at METI, the Hitotsubashi University, the Stanford Graduate Business School and others. She was granted research funds by the Federal Ministry of Education and Research, the Wolfgang Ritter Foundation, the Japan Foundation and others.

Recent papers have been published in Research Policy, ZfB and Social Science Japan Journal. She is co-editing a special section of Research Policy on “Path Dependence and Emergence of New Industries” and a special issue of Socio Economic Review on “Asian Capitalism” (both forthcoming). She is co-author of Institutional Diversity and Innovation. Continuing and Emerging Patterns in Japan and China  (Routledge, 2011) and co-editor of Institutional Variety in East Asia. Formal and informal patterns of coordination (Edward Elgar, 2011). She is co-organiser of the SASE network “Asian Capitalisms” and member of executive committee of the European Research Network EJARN, based at the Stockholm Schools of Economics.

SE107, First Floor, Serra East Building, Knight Management Center, Stanford Graduate School of Business, Stanford, CA94305-7298

Cornelia Storz Professor for the Study of Economic Institutions and East Asian Development Speaker University of Frankfurt
William F. Miller Moderator
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