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Inefficiency and Self-Determination: Simulation-Based Evidence From Meiji Japan

Author

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  • Weese, Eric
  • Hayashi, Masayoshi
  • Nishikawa, Masashi
Abstract
Does the exercise of the right of self-determination lead to inefficiency? This paper considers a set of centrally planned municipal mergers during the Meiji period, with data from Gifu prefecture. The observed merger pattern can be explained as a social optimum based on a very simple indiidual utility function. If individual villages had been allowed to choose their merger partners, counterfactual simulations show that the core is always non-empty, but core partitions contain about 80% more (post-merger) municipalities than the social optimum. Simulations are possible because core partitions can be calculated using repeated application of a mixed integer program.

Suggested Citation

  • Weese, Eric & Hayashi, Masayoshi & Nishikawa, Masashi, 2015. "Inefficiency and Self-Determination: Simulation-Based Evidence From Meiji Japan," Center Discussion Papers 211545, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:211545
    DOI: 10.22004/ag.econ.211545
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    Cited by:

    1. Masayoshi Hayashi & Takafumi Suzuki, 2018. "Municipal Mergers and Capitalization: Evaluating the Heisei Territorial Reform in Japan," CIRJE F-Series CIRJE-F-1105, CIRJE, Faculty of Economics, University of Tokyo.
    2. Eric Weese, 2016. "European Political Boundaries as the Outcome of a Self-Organizing Process," Discussion Papers 1629, Graduate School of Economics, Kobe University.
    3. repec:kob:wpaper:1629 is not listed on IDEAS

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    More about this item

    Keywords

    Political Economy; Public Economics; Research Methods/ Statistical Methods;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East

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