A New Approach of Economic policy on an Affluent Society

点击翻译按钮获取中文摘要

Japanese peoples and companies recently experience a large deregulation. Some radical institutional changes will happen in Japan.They have a great influence on player's behavior in economic activity. The institution gives the rule of game to players or gives them some constrains. It consists of the institutional environment and the institutional arrangement.From our point of view the institution consists of the political rule, the law rule and the cultural rule. The Political rule consists of democracy or the property right and the law rule consists of the constitution, the commercial law and the civil law. The Cultural rule consists of the labor ethics or the religion. Players make some sub rule in favor of themselves under these rules. These are rules of trades or contracts and called the institutional arrangement or governance. We will mention the Japanese industrial relations, and affiliation trades as examples.Players may change their behavior in face of a radical institutional change, then economic performance is also different from before the change. Economic performance changes under partial deregulation. For example, the cell mobile phones were recently used under deregulation in Japan. We analyzed the economic performance under institutional change in some fields- the labor market, the pension, the financial market. In conclusion, We propose that the institutional changes give to rise to a great economic influence and we also propose a new approach of economic policy to analysis economy under change of institution. We present economic policy of institutional and new criteria of economic policy. We present the transaction cost criterion as efficiency and the safety net as stable criterion and the national minimum criterion as equity.