2007 Fiscal Year Final Research Report Summary
The Economic and Sociological Analysis of Business Recovery in Japan
| Project/Area Number |
17530187
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (C)
|
| Allocation Type | Single-year Grants |
|---|
| Section | 一般 |
|---|
| Research Field |
Applied economics
|
|---|
| Research Institution | Aoyama Gakuin University |
|---|
Principal Investigator |
NAKAGOME Masaki Aoyama Gakuin University, College of Economics, Professor (30137020)
|
|---|
| Project Period (FY) |
2005 – 2007
|
| Keywords | cognitive economics / economic theory / social psychology / risk / business recovery / uncertainty / behavioral economics |
|---|
| Research Abstract |
(1) The risk hedge behavior is necessary for the first step of business recovery to prevent the final bankrupt of difficult firms. However the strong perception of uncertainty makes it impossible and increases the tendency of risk-taking behavior. The possibility of success in business recovery will decrease with the strong risk-taking behavior. By the behavioral economic approach, we demonstrate the negative influence of uncertainty on the risk hedge behavior. This theoretical implication can be applied to the Japanese firms which need business recovery. Because the macroeconomic structure of Japanese society is drastically changing, and Japanese people have potentially strong perception of uncertainty. The macroeconomic uncertainty is expected to have harmful effects on the decision-making behavior of economic agents. For preventing the negative effects on business recovery, the government should decrease the perception of uncertainty by some active policies. For example, the foundation of Industrial Revitalization Corporation Japan (IRCJ) is a good example for a successful policy.
(2) Our research also tries to extend behavioral economics which is the fundamental tool for our analysis. The monograph "cognitive economics : the new foundation for economics" is my result obtained by this research. The new cognitive economics should be applied to the analysis of business recovery as well as business innovation beyond the restrictive behavioral analysis. This is an exciting object for future research.
|
