Empirical analysis of the defense interdependence between Japan and the United States

Ando, Shio

doi:10.1080/10242694.2013.793531

Cited by 2 publications

(2 citation statements)

References 16 publications

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“…In recent years, security issues throughout the Asia-Pacific region have become more serious. To cope with various such problems in the future, the cooperative relationship between Japan and the US will probably have to be strengthened (Ando 2014).…”

Section: Resultsmentioning

confidence: 99%

The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test

Zhong¹,

Chang²,

Tang³

et al. 2015

Defence and Peace Economics

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We revisit the causal relationship between military spending and unemployment in the G7 countries applying a bootstrap panel causality analysis that accounts for both cross-sectional dependence and for heterogeneity across countries. Using per capita real GDP as a controlled variable, we found a unidirectional causality running from military spending to unemployment for Canada, Japan, and the US, one-way causality running from unemployment to military spending for France and Germany, and bidirectional causality for Italy and the UK. The empirical evidence does not seem to provide consistent results regarding the causal relationship between military spending and unemployment in G7 countries.

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Section: Resultsmentioning

confidence: 99%

The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test

Zhong¹,

Chang²,

Tang³

et al. 2015

Defence and Peace Economics

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“…Recent leading research looking at Japanese defense from the perspective of defense economics includes research by Ando (2015) which uses an autoregression distribution lag model (ADL model) to verify, from both short-term and long-term perspectives, whether U.S. defense contributes to Japanese defense. Ando's inferential results are that Japanese defense expenditures have maintained a stable relationship with estimated U.S.-side variables.…”

Section: Previous Researchmentioning

confidence: 99%

Verification of the Japanese Government’s Level of Utility with Respect to Defense: Creation and Measurement of an MAI-I Model

Mizuno¹,

Ando²,

Igusa³

2016

International Journal of Social Science Studies

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In Japan very little empirical security research has been conducted using economic theory. This is because the utility maximization and profit maximization on which economic theory is based are considered to be difficult to apply to security research. The authors have created a model for utilizing economic theory, which so far has been difficult to apply to the economic analysis of security, which they call the MAI-I model. This model has the following features.First, when performing analysis using utility functions, it uses government utility functions and assumes the use of cardinal utility which can accurately measure utility levels. The utility function in this paper, therefore, makes it possible to accurately measure the utility level of past Cabinets with respect to defense.Second, in order to accurately measure utility the precision of utility functions must be increased. In economic theory, for the purpose of greater measurement convenience, utility functions are assumed to be 1st-order homogenous functions. This paper does not make that assumption. Instead, it assumes the function is a μ-order homogenous function and creates a model for use in cardinal utility measurement. The utility function includes μ in its power, but measurement was made possible by using it as an MAI-I model. This produced the following results.First, it was possible to measure the μ value of the μ-order homogenous function, necessary to measure the utility level of the Japanese government with regard to defense. It was found that the function was a 1.1079-order homogenous function. This indicated that the Japanese government has, for a long time, implemented security policy with a defense expenditure budget of less than 1% of the GDP, and restrained their utility even though it will largely grow if they will increase defense equipments and personnels.Second, this utility function could then be used to calculate the government's cardinal utility. This cardinal utility was said to be impossible to measure accurately, but assuming the function is a μ-order homogenous function, it was possible to utilize Japanese defense data to perform measurement. In other words, for the Cabinets which actually focused on security policy, the policies were reflected in actual utility level measurements, indicating that the MAI-I model created in this paper can be used for economic analysis of security. The ability to use the utility functions of this paper to accurately measure utility levels of past Cabinets with regard to defense is a successful quantification of Japan's defense history.Last, the paper indicated future potential for use of the model in analyzing utility from a variety of perspectives.

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Empirical analysis of the defense interdependence between Japan and the United States

Cited by 2 publications

References 16 publications

The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test

The causal nexus between military spending and unemployment in the G7: a bootstrap panel causality test

Verification of the Japanese Government’s Level of Utility with Respect to Defense: Creation and Measurement of an MAI-I Model

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