| Budget Amount *help |
¥4,420,000 (Direct Cost: ¥3,400,000、Indirect Cost: ¥1,020,000)
Fiscal Year 2015: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2014: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2013: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2012: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
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| Outline of Final Research Achievements |
The purpose of this research is to analyze the effects of the increase in the government expenditure on welfare in the economy with rent-seeking activities. In this economy, the firms with low productivity may be active in the market when the government increases the expenditure by rent-seeking activities. This decreases the average productivity of this economy (note: I show that the adverse mechanism may arise, depending on the condition.). In the economy where firms determines their wages according to not only their own but the average productivity, the lower average productivity decreases each firm's wage. We call this the wage decreasing effect. However, if lower-productivity firms can be active by rent-seeking activities, it increases labor demand. We call this the labor increasing effect. When the labor increasing effect dominates the wage decreasing effect, the increase in the government expenditure can rise the welfare in this economy, and vice versa.
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