Institutional Analysis of Japanese Economy II

Japan's economic development provides an important case for understanding how a non-Western economy industrializes and transforms its socio-economic system. This course examines key factors that shaped the development of the Japanese economy from the eighteenth to the twentieth century.

The first aim of the course is to provide students with a deeper understanding of Japan's economic development. Japan's historical experience has become more, not less, relevant to contemporary economists. For a long time Japan was the only non-Western industrialized economy. Today, led by China, the balance of industrial power has shifted dramatically toward the non-Western world. Japan's experience offers valuable lessons on how a non-Western economy industrializes and adapts its institutions and economic organization.

The second aim of the course is to practice applying economic theory to real historical cases. The knowledge of economics enriches intellectual and professional life only when theory can be applied to real economic phenomena. In this course we apply economic reasoning to the historical experience of Japan.

The course is organized around important research papers in Japanese economic history and development economics. In each class the instructor explains the main arguments, methods, and findings of the papers and discusses their implications for understanding Japan's economic development. The final examination will evaluate whether students have studied the assigned papers carefully and understood the main ideas discussed in class.