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The Depressing Effect of Agricultural Institutions on the Prewar Japanese Economy Author info | Abstract | Publisher info | Download info | Related research | Statistics Fumio Hayashi
Edward C. Prescott
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Why didn't the Japanese miracle take place before World War II? The culprit we identify is a barrier that kept prewar agricultural employment constant. Using a standard neoclassical two-sector growth model, we show that the barrier-induced sectoral distortion and an ensuring lack of capital accumulation account well for the depressed output level. Without the barrier, Japan's prewar GNP per worker would have been at least about a half of that of the United States, not about a third as in the data. The labor barrier existed because, we argue, the prewar patriarchy forced the son designated as heir to stay in agriculture. (c) 2008 by The University of Chicago. All rights reserved..
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Article provided by University of Chicago Press in its journal Journal of Political Economy .
Volume (Year): 116 (2008)
Issue (Month): 4 (08)
Pages: 573-632
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Handle: RePEc:ucp:jpolec:v:116:y:2008:i:4:p:573-632Contact details of provider: Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Fax: (773) 753-0811 Email: Web page: http://www.journals.uchicago.edu/JPE/home.html
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