Table Of ContentMoriki Hosoe · Biung-Ghi Ju ·
Akira Yakita · Kiseok Hong Editors
Contemporary
Issues in
Applied
Economics
Ten Years of International Academic
Exchanges Between JAAE and KAAE
Contemporary Issues in Applied Economics
Moriki Hosoe Biung-Ghi Ju
(cid:129) (cid:129)
Akira Yakita Kiseok Hong
(cid:129)
Editors
Contemporary Issues
in Applied Economics
Ten Years of International Academic
Exchanges Between JAAE and KAAE
123
Editors
Moriki Hosoe Biung-Ghi Ju
Faculty of Economics SeoulNational University
Kyushu University (Emeritus Professor) Seoul, Soul-t´ukpyolsi,Korea (Republicof)
Fukuoka,Japan
KiseokHong
AkiraYakita Department ofEconomics
Schoolof Economics EwhaWomansUniversity
Nanzan University Seoul, Soul-t´ukpyolsi,Korea (Republicof)
Nagoya,Japan
ISBN978-981-13-7035-9 ISBN978-981-13-7036-6 (eBook)
https://doi.org/10.1007/978-981-13-7036-6
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Preface
This book is the collected papers in commemoration of the tenth anniversary of
academicexchangebetweentheJapanAssociationforAppliedEconomics(JAAE)
and the Korean Association for Applied Economics (KAAE). With the name of
applied economics, both academic societies can be called sister ones. The inter-
national exchange of the two academic societies has reached a milestone of 10
years, since several researchers from KAAE joined at the JAAE meeting in the
autumnatChuoUniversity.Wewereabletodeepenacademicexchangesbymutual
presentation and discussion. We would like to express my gratitude to Prof. Hang
Keun Ryu of Chung Ang University and Prof. Tamotsu Nakamura of Kobe
University for their great contribution to the development of our international
exchange. A feature of this book is to analyze various contemporary issues in
applied economics, distinguished by advanced theoretical research and empirical
analysisbasedonJapanandKorea.Inparticular,thisbookconsistsoffourparts.In
Part I, we investigate the fields of economic development, growth, and welfare,
usingtoolsofappliedanalysis.InPartII,thefieldsofinequality,redistribution,and
intergenerational transfers are studied mainly on an empirical basis. In Part III, we
focusonthefieldsofpublicpolicyandpoliticaleconomics.Inlastpartthefieldsof
resource and environmental economics are investigated on the basis of the data of
Japan and Korea. We hope that two associations will promote the further cooper-
ationofacademicexchangeonthebasisofthisproject.Lastly,wewishtoexpress
ourspecialthankstoProf.TohruNaitoofDoshishaUniversityforhisassistancein
editing this book.
Seoul, Korea (Republic of) Biung-Ghi Ju
Nagoya, Japan Akira Yakita
Seoul, Korea (Republic of) Kiseok Hong
Fukuoka, Japan Moriki Hosoe
January 2019
v
Contents
Part I Economic Development, Growth, and Social Welfare
1 Improvement in Living Standards in the 1960–1970s
and Economic Development in Korea. . . . . . . . . . . . . . . . . . . . . . . 3
Sok Chul Hong
2 Fertility Dynamics with Family Bargaining. . . . . . . . . . . . . . . . . . . 37
Akira Yakita
3 Skill-Biased Innovation, Growth, and Inequality . . . . . . . . . . . . . . 53
Yasuyuki Osumi
4 Ramsey’s Conjecture in a Stochastically Growing Economy. . . . . . 75
Tamotsu Nakamura
5 Impact of Copyright Protection on Re-creation of Digital
Contents When Expression and Idea Are Divisible. . . . . . . . . . . . . 89
Takuya Nakaizumi
Part II Inequality and Redistribution, and Intergenerational
Transfers
6 An International Comparison of Inequality of Educational
Opportunity Using TIMSS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Changhui Kang and Sungjae Oh
7 Political Economics of Income Inequality, Redistributive Policy,
and Interregional Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Moriki Hosoe, Tadahisa Ohno and Akira Kawasaki
8 Population Aging and Tax Policy in Korea. . . . . . . . . . . . . . . . . . . 137
Kiseok Hong
vii
viii Contents
9 Public Debt, Lobbying and Endogenous Redistribution
in an Overlapping-Generations Model . . . . . . . . . . . . . . . . . . . . . . 157
Tsuyoshi Shinozaki, Isidoro Mazza and Minoru Kunizaki
10 Intergenerational Living Arrangements and Labor Supply
of Married Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Hyunbae Chun, Olivia Hye Kim and Injae Lee
Part III Public Policy and Political Economics
11 An Employment Model of Social Enterprises and the Effects
of Government Subsidy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Hyunwoo Hong and Biung-Ghi Ju
12 Congestion, Technical Returns, and the Minimum Efficient
Scales of Local Public Expenditures: An Empirical Analysis
for Japanese Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Masayoshi Hayashi
13 Fiscal Stabilization Under Government Spending Reversal. . . . . . . 233
Kazuki Hiraga
14 Welfare Effects of Public Education and National Security. . . . . . . 245
Tatsuya Omori
15 Optimal Cooperation of Medical Care and Nursing Care
in a Two-Region Spatial Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
Tohru Naito
16 Towards Deeper Integration Among China, Japan
and Korea. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Bo-Young Choi and Seo Young Lee
17 Effects of Multidimensional Poverty on Health Indicators
in Japan: Income, Time, and Social Relations . . . . . . . . . . . . . . . . 311
Wei Wang and Kunio Urakawa
18 A Real Options Analysis on Speculative Bubbles in Housing
Market: Considering Seoul Metropolis Case. . . . . . . . . . . . . . . . . . 327
Hojeong Park
Part IV Resource and Environmental Economics
19 CO Emissions, Energy Consumption, GDP, and Foreign Direct
2
Investment in ANICs Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
Suyi Kim
Contents ix
20 Consumer Heterogeneity and Trade in Shared Renewable
Resource Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
Takeshi Ogawa
21 The Relationship Between Oil Price and Korean Industrial
Production and Inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371
In Huh
Part I
Economic Development, Growth,
and Social Welfare
Chapter 1
Improvement in Living Standards in the
1960–1970s and Economic Development
in Korea
SokChulHong
1.1 Introduction
Korea achieved a remarkable economic growth in the 1960–1970s after its eco-
nomicfoundationwasruinedbyKoreanWar(1950–53).Thisrapidgrowthisgener-
allycalledasthe‘MiracleontheHanRiver’.Duringthemiraculousperiod,Korea
achievednotonlyeconomicgrowth,butalsoaremarkableimprovementinthestan-
dardsoflivingincludingcontrolofdiseases,expansionofeducationalopportunities,
increase in consumption, reduction of inequalities and so on. The improvement in
livingstandardsinthe1960–1970shasbeenasignificantfoundationthathasledto
asuccessfuleconomicdevelopmenttoday.
It is intriguing to know that living conditions or living standards in the United
KingdomandUnitedStatesinthe19thcentury,whichsucceededinindustrialization
and urbanization during the period, were as low as those in Korea right after the
Korean War.They could notachieve theadvancement inlivingstandards untilthe
early20thcentury.Then,theycouldbuildwelfarenationsbysucceedingindisease
controlduetoadvanceinmedicalknowledgeandinvestmentinpublichealth,and
bymakingsubstantialinvestmentsinpublicsectorssuchaseducationandwelfare.
The improvement in living standards in Korea during the 1960–1970s did not
resultfromintroducingnewtechnologies,policiesandsystem,whichwerenotprevi-
ouslyobservedinothercountries.ButitwasthemostsignificantthatKoreaadopted
policies and system, considering Korea-specific situation, that were successfully
establishedindevelopedcountriesinthefirsthalfofthe20thcentury.Inaddition,
theimprovementcouldbeachievedwithinashortperiodlargelybecauseofstrong
drivingforcebyKoreagovernment,socialconsensusandnationalparticipation,and
implementationofeffectivepoliciesandsystem.
B
S.C.Hong ( )
SeoulNationalUniversity,Seoul,RepublicofKorea
e-mail:[email protected]
©SpringerNatureSingaporePteLtd.2019 3
M.Hosoeetal.(eds.),ContemporaryIssuesinAppliedEconomics,
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