The treatment of the wartime period in Japan's history textbooks has long been a subject of debate and controversy, even a source of international tension. Since their creation, history textbooks have been used to shape national identity and encourage patriotism. This article, drawing on the comparative study of high school history textbooks in Japan, China, South Korea, Taiwan and the United States by Stanford's "Divided Memories and Reconciliation" project, compares the treatment of the wartime period in the textbooks of China and Japan. The study found that Japanese textbooks are relatively devoid of overt attempts to promote patriotism and that they contain more information about controversial wartime issues such as the Nanjing Massacre than is widely believed. In contrast, Chinese textbooks, particularly after their revision a decade ago, are consciously aimed at promoting a nationalist view of the past as part of the country's “patriotic education” campaign. The article warns, however, against efforts in Japan to promote a Japanese-style version of patriotic education.

This paper discusses economic impacts and policy challenges related to implementing Basel III, the new international standard of banking regulation, in the United States, Japan, and the European Union. The G20 leaders endorsed Basel III in late 2010 and currently national regulators are translating it into their national laws and regulations. A key issue is whether regulators can persuade their national legislatures and industries of the merits of Basel III. This paper compares and analyzes the economic cost-benefits of Basel III under the different regulatory environments of these countries, including the size of the banking sector in financial intermediation, the size of bank assets relative to GDP, additional capital that banks need to raise, the methods banks use to raise capital ratio, and cross-border bank activities.

The levels of violence in Mexico have dramatically increased in the last few years due to structural changes in the drug trafficking business. The increase in the number of drug trafficking organizations (DTOs) fighting over the control of territory and trafficking routes has resulted in a substantial increase in the rates of homicides and other crimes. This study evaluates the economic costs of drug-related violence. We propose electricity consumption as an indicator of the level of municipal economic activity and use two different empirical strategies to test this. To estimate the marginal effects of violence, we utilize an instrumental variable regression created by Mejía and Castillo (2012) based on historical seizures of cocaine in Columbia interacted with the distance of the Mexican border towns to the United States. We find that marginal increases of violence have negative effects on labor participation and the proportion of unemployed in an area. The marginal effect of the increase in homicides is substantive for earned income and the proportion of business owners, but not for energy consumption. We also employ the methodology of synthetic controls to evaluate the effect that inter-narco wars have on local economies. These wars in general begin with a wave of executions between rival criminal organizations and are accompanied by the deterioration of order and a significant increase in extortion, kidnappings, robberies, murders, and threats affecting the general population. To evaluate the effect that these wars between different drug trafficking organizations have on economic performance, we define the beginning of a conflict as the moment when we observe an increase from historical violence rates at the municipal level beyond a certain threshold, and construct counterfactual scenarios as a weighted average from optimal control units. The analysis indicates that the drug wars in those municipalities that saw dramatic increases in violence between 2006 and 2010 significantly reduced their energy consumption in the years after the change occurred.

Phillip Y. Lipscy and Lee Schipper examine energy efficiency in the Japanese transportation sector since the 1970s. Comparisons with the United States and other developed economies illustrate that Japan primarily stands out due to low activity levels and modal structure rather than modal energy intensity. On-road automobile energy intensity has shown little improvement, albeit from a low base, over the past four decades. They also consider policy measures undertaken by the Japanese government. Political arrangements in Japan after World War II made it attractive for politicians to pursue energy conservation by making transportation, particularly by automobile, expensive for the average Japanese citizen. The revenues raised from various fees and taxes on automobile transportation were redistributed to core supporters of the ruling Liberal Democratic Party. These political arrangements have come under fire in recent years, calling into question Japan's traditional approach towards transportation sector energy efficiency.

This paper reports on a survey conducted among more than 800 engineering students at elite universities in China and the United States. Results from the survey reveal that US and Chinese students are roughly equivalent in their desire to form or join startup ventures. Far more US students, however, plan on actually doing so. In contrast, Chinese students are more likely to join the state/government sector. Our results also reveal a wide gap in perceptions on the availability of financing, mentorship and other innovation resources. The findings suggest that the innovation ecosystem in China remains underdeveloped in certain important respects.