Professor Yuko Arayama

Area and Subject Taught Economic Theory
Research Theme(s) Economic Theory and Application
Academic Degrees Ph.D.(Economics) The University of Chicago
Keywords for Research Field Economic Theory and Application
Office Phone Number 81-75-705-0914

Research Overview

Economists took the meaning of Adam Smith’s invisible hand literally, and have tried to interpret market mechanisms based on their understanding of the invisible hand. So, they have been distracted from the scientific methodology at which they should have been aiming. In the 1870s, Menger, Walrus and Jevons proposed the Theory of Utility and Alfred Marshall established neoclassical economics based upon their theory.
They theorized that two actors, firms and households, make decisions in the market. While a firm’s aim is to maximize profit under given technology (production function), prices of goods and services, and factor price, a household’s aim is to maximize the utility under the budget constraint of prices of goods and services, and income, which is separated from production and given exogenously in some sense. The utility is exogenously given to households, so in neoclassical economics household supply of labor and capital is determined by a utility function, different from the purchase function of goods and services. Therefore, in this framework, decisions regarding production, consumption, and labor hours (and capital lending), which should be one decision process, come out as three separate theories: Consumer Behavior Theory, Firm Behavior Theory and Labor Supply Theory (Neoclassical Theory for Labor Supply).
However, this theoretical “tri-chotomy” does not seem so strange when we look at the conditions on a one-company or one-household behavior basis, that is, when we consider this as partial equilibrium. This is because it is natural for us to consider that one firm or one household as an economic identity is too small to have any impact on market equilibrium. But it is still very awkward and seems odd to consider that decisions in consumption are independent from decisions on labor hours, because a household tends to increase its labor hours to purchase expensive goods and services.
Based on these considerations, my research focuses on developing a general equilibrium model including households.

Notable Publications and Works

"Could we remain simply applying discount rate to evaluate the life quality of our future generations?" 『Chinese Journal of Population』 , Resources and Environment, 2013, 2-11, pp168-173
"Government Regulation and Market Force",『21世紀COE国際共同研究企画「行動の制御と法秩序形成の課題」報告書』(京都大学大学院法学研究科21世紀COEプログラム),2008,第6章,10節,pp71-81
"Educational Disparity and Income Inequality in China: A Case Study of Shenzhen",『中国人口科学』,Chinese Journal of Population Science,2008,第一期 124号,pp19-29
*詳しくは、HP: 参照のこと。