Major Common Themes: 2004

RIETI aims to become an "Economic Policy-Designing Headquarters" that can contribute to the formulation of pioneering and cross-cutting policies, detecting and excavating important policy issues in an adequate and preemptive manner by facilitating three-way exchanges among the government, the private sector and academia. To achieve this end, RIETI has set out "Major Common Themes" consisting of six pillars of key economic issues as a new mid- to long-term framework for research activities.

I. Comprehensive Appraisal of "Lost Decade"

Comprehensive Macro- and Micro-Economic Appraisal of Gains and Losses of the 10 years Stagnation and Identifying New Challenges

Sub Major Issues

  • I-A Exit mechanism unique to Japan's deflation
  • I-B Changes in determinants of TFP
  • I-C Structural reforms - implementation and their effects
  • I-D Institutional complementarities between corporate and government governance

II. New Global Imbalances in an Era of Asian Integration

Nature of New Global Imbalances - Designing adjustment policies compatible with further integration in Asia under Globalization of Trade and Finance -

Sub Major Issues

  • II-A Why can US external deficit remain so large? - Is it sustainable?
  • II-B Triangular trade pattern and intra-industry vertical specialization
  • II-D Relations between exchange regimes and domestic institutional development
  • II-E Exploring compatibility between free trade and environment
  • II-F How to overcome FTA's shortcomings?
  • II-G Globalization and income disparity in Asia
  • II-H Technocrat-government relationships in post-crisis Asia

III. Public Debt and Economics of Ageing

Integrated Approach to Public Debt, Pensions and Health

Sub Major Issues

  • III-A How can Japan sustain its huge public debt?
  • III-B Holistic approach to social security issues: economics of ageing
  • III-C Searching for ideal pension systems
  • III-D What social security systems would minimize disincentives in labor market?

IV. New Financial Market Architecture and Corporate Governance

New Financial Market Architecture, New Corporate Governance and Industrial Organization

Sub Major Issues

  • IV-A New analytical framework for designing financial architecture
  • IV-B Institutional differences between banking systems and capital markets
  • IV-C Impediments to yen-denominated bond markets
  • IV-D Where is Japanese corporate governance heading?

V. Exploring New Systems for Innovation

Exploring New Systems for Innovation

Sub Major Issues

  • V-A Searching for new innovation systems that strengthen competitiveness
  • V-B What financial systems and competition policy facilitate innovation?
  • V-C International and regional agglomeration phenomena
  • V-D Japan's "soft power" and its impact on Asia
  • V-E Human capital formation most fitted for innovation systems
  • V-F Impact on industrial structure of ageing, cares, and environment

VI. Strengthening Database and Model Operations

Strengthening Data Base and Model Operations

Sub Major Issues

  • VI-A Developing micro-models for policy evaluation of deregulations
  • VI-B New micro-database related to services, ageing, and environment
  • VI-C Strengthening model operations related to international trade and pensions