Political Culture, Economic Structure and Policy: The Laffont‐Tirole Model Extended to Modern Japan

Abstract

This paper deals with two issues. By linking culture and political systems, we develop alternatives to the "Developmental State" approach and propose, among other types, the "Bureaucratic State" for explaining the case of Japan. We extend the Laffont-Tirole (L-T) model of regulatory capture and propose a "bureaucratic capture" model. Variations of capture are shown to apply, given particular cultural predispositions. The case of atomic energy in Japan and the United States is then studied to assess the predictive efficacy of the extended L-T model. We conclude that cultural predispositions and the corresponding state types affect the degree to which capture takes place.

Values‐led conservation

“… the ‘bureaucratic capture’ of the movement (Young & Meijaard, 2002); the growing corporate outlook of the international conservation establishment; the growth of expert hegemony linked to the promotion of the technocratic term ‘biodiversity’. …”

“…Related to the above, a number of parallel trends are evident in the contemporary conservation movement: • the 'bureaucratic capture' of the movement (Young & Meijaard, 2002); • the growing corporate outlook of the international conservation establishment; • the growth of expert hegemony linked to the promotion of the technocratic term 'biodiversity'. Once a social agenda secures the attention of the government there is a tendency to re-define it in terms consistent with political and bureaucratic needs (Derry, 2000).…”

Mechanism Design for an Incentive Subsidy Scheme for Bus Transport

“…The main purpose of this paper is to propose an incentive subsidy scheme based on the Laffont-Tirole model [21], which has been widely applied in the regulation of other industries [22][23][24] but has rarely been studied in the field of public transport. Following a brief introduction tothe situation of public transport subsidies in Japan, we provide an overview of the relevant work on public transport subsidies research.…”

A model of embedded autonomy and asymmetric information

“…4 4 Qian and Xu (1998) incorporated asymmetric information, and bureaucrats can make mistakes as a result, but their focus is on soft budget constraints, and social closeness does not play a role. Young and Meijaard (2002) extended the Laffont and Tirole (1991) model of regulatory capture to the case of Japan, but the structure of such models, like those of influence and lobbying in general, does not give any role to social closeness as a driver of information for bureaucrats.…”

“…This discussion is laid out inEvans (1992).3 Indeed, the concept of embedded autonomy and the use of the term have permeated the literature on state-society relations in developmental contexts, and it is difficult to be exhaustive in noting the range of applications. Other East Asia-related examples of applications includeWai (1999),Shin (2010) andZhou et al (2010).4 Qian and Xu (1998) incorporated asymmetric information, and bureaucrats can make mistakes as a result, but their focus is on soft budget constraints, and social closeness does not play a role Young and Meijaard (2002). extended theLaffont and Tirole (1991) model of regulatory capture to the case of Japan, but the structure of such models, like those of influence and lobbying in general, does not give any role to social closeness as a driver of information for bureaucrats.5 As will be clear from our modelling, we use 'cronyism' to describe a general phenomenon, one which only descends to what is usually called 'crony capitalism' in specific circumstances.…”