Comp Systems Quiz 2

Type of model Japan has

Small Public Welfare State

Japan has a dual economy which means

lots of international corporate firms (banking and industrial trading groups) and small rural farmers without a lot in between

How did Japan reform itself?

US gov enforced democratic values on Japan while Japan simultaneously stayed traditional so now they have a combo

How do you obtain welfare in Japan?

Through family, and therefore public welfare is small because you have to exhaust all your options first

Role of Women in Japan

They often have to leave the workforce at a certain age to take care of children and the elderly 

Challenges to current system in Japan

1. Stagnate Growth 

2. Japan’s population is getting very old

3. women dont want to be pulled from the workforce

4. low birth rate 

5. homelessness

State

organization w comparative advantage in violence, extending over a geographic area whose boundaries are determined by its power to tax constituents

(lower tc = more efficient functions)

Pressure groups 

Small groups that can use power in excess of relative voting strength, more efficient bcs they’re small and gov continues to make policies that benefit them rather than benefit the population as a whole 

Logic of the Collective Action Problem

Why are smaller groups more efficient?

Transaction costs in a small group are lower so you can monitor everyone in the group to ensure there are no free riders

Functions of State

1. Provide rules of the game (pr, protection and commodity factors)

2. lower tc 

3. stable money standards

4. states provide law, justice and security 

Services of State

State functions and existence (such as ability to add new functions and provide safety depends on what 

ability to collect taxes 

constraints to ruler’s power

1. domestic and foreign rivals (availability of substitutes)

2. opportunistic behavior (utility function different from ruler’s)

3. measurement costs (particularly tax based)

Source of change

Examples of things with a monopoly over violence 

mercenaries, privateers, pirates, church and nobility 

Mafia

a specific economic enterprise , and industry which produces, promotes and sells private production OR a set of firms that provide extra state protection to consumers not exclusively in illegal mkt sector

extortion vs protection

criminal protection is a commodity that relies on threat, and ultimately the actual use of violence

security firm vs mafia

you do not have a choice when making an arrangement with the mafia, instead you are given an offer you cannot refuse 

example of a time government’s inability to cause formal protection caused people to rely on local Don’s

alcohol prohibition in 1920-33

italian mafias 

Sicily - La Cosa nostra, Calabria - Ndrangheta, Campania - Camorra

why are itlaian mafias very profitable in recent years?

they have access to major ports in Italy and control most of trade from China into Europe which adds additional income for them

Factors that limit the mafia’s ability for expansion

need for good intelligence, internal rivalry, opportunistic behavior of members in the group and measurement costs

who does the mafia protect

themselves, other criminals, entrepreneurs in illegal markets, ordinary people, politicians, state, illegal and legitimate business

Negative consequences of mafia protection

usually less efficient production (from competitive advantage), higher prices, smaller firms and reduced competition

corruption

use of public office for private gains

Magna Carta

No taxation without representation

Why is free press needed for democracy?

free press keeps people informed, which they need to be in order to have a vote

internal and external reasons to constrain government

internal- England and Netherlands in the 17th century, external- Atlantic trade

origins of limited government

1. democratic views first; limited gov follow 

2. limited gov first; democratic views folllow 

3. simulant