Governance

FSI's research on the origins, character and consequences of government institutions spans continents and academic disciplines. The institute’s senior fellows and their colleagues across Stanford examine the principles of public administration and implementation. Their work focuses on how maternal health care is delivered in rural China, how public action can create wealth and eliminate poverty, and why U.S. immigration reform keeps stalling. 

FSI’s work includes comparative studies of how institutions help resolve policy and societal issues. Scholars aim to clearly define and make sense of the rule of law, examining how it is invoked and applied around the world. 

FSI researchers also investigate government services – trying to understand and measure how they work, whom they serve and how good they are. They assess energy services aimed at helping the poorest people around the world and explore public opinion on torture policies. The Children in Crisis project addresses how child health interventions interact with political reform. Specific research on governance, organizations and security capitalizes on FSI's longstanding interests and looks at how governance and organizational issues affect a nation’s ability to address security and international cooperation.

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My Journey at the Nuclear Brink is a continuation of William J. Perry's efforts to keep the world safe from a nuclear catastrophe. It tells the story of his coming of age in the nuclear era, his role in trying to shape and contain it, and how his thinking has changed about the threat these weapons pose.
  
In a remarkable career, Perry has dealt firsthand with the changing nuclear threat. Decades of experience and special access to top-secret knowledge of strategic nuclear options have given Perry a unique, and chilling, vantage point from which to conclude that nuclear weapons endanger our security rather than securing it.

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Abstract: The Federal response to dual use pathogens is being actively debated. We are at a critical juncture between free science exploration and government policy. Should science be regulated? We impede discovery and innovation at our peril. Yet, this issue must be viewed through the lens of the looming  infectious disease threat, globalization and its consequences, and environmental challenges such as climate change.

About the Speaker: Lucy Shapiro is a Professor in the Department of Developmental Biology at Stanford University School of Medicine where she holds the Virginia and D. K. Ludwig Chair in Cancer Research and is the Director of Stanford’s Beckman Center for Molecular & Genetic Medicine. She is a member of the scientific advisory boards of the Ludwig Institute for Cancer Research, the Pasteur Institute in Paris, and the Lawrence Berkeley National Labs and is a member of the Board of Directors of Pacific Biosciences, Inc. She founded the anti-infectives discovery company, Anacor Pharmaceuticals, that was recently sold to Pfizer. She has co-founded a second company, Boragen LLC, providing novel antifungals for agriculture and the environment. Her studies of the control of the bacterial cell cycle and the establishment of cell fate has yielded fundamental insights into the living cell and garnered her multiple awards including the International Canadian Gairdner Award, the Abbott Lifetime Achievement Award, the Selman Waksman Award and the Horwitz Prize. In 2013 President Obama awarded her the US National Medal of Science. She is an elected member of the US National Academy of Sciences, the National Academy of Medicine, and the American Academy of Arts & Sciences.

Lucy Shapiro Professor, Department of Developmental Biology, School of Medicine Stanford University
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The Japan Program held the third annual Stanford Summer Juku on Japanese Political Economy from August 10-13. Over 40 scholars from various parts of the US and Japan participated in the conference, which took place at the Bechtel Conference Center at Encina Hall. The first two days focused on political science and the second day on economics. Distinctive features of the Summer Juku are the long times allotted to each paper to allow for two in-depth discussants and discussion among participants, as well as ample time for informal discussions and interactions among participants allowing for collaborations and expansion of the network of researchers on Japan in political science and economics. Particularly notable this year was a large number of cross-disciplinary and cross-national collaborations between scholars ranging from political science, economics, management, infomatics, and medicine.

The first day included four papers in political science. Amy Catalinac from New York University presented her paper, "Positioning Under Alternative Electoral Systems: Evidence from 7,497 Japanese Candidate Election Manifestos", with discussants Gary Cox (Stanford) and Harukata Takenaka (National Graduate Institute for Policy Studies, Japan).

Daniel Smith (Harvard University) presented a paper co-authored by Yusaku Horiuchi (Dartmouth College) and Teppei Yamamoto (MIT) entitled "Identifying Multidimensional Policy Preferences of Voters in Representative Democracies: A Cojoint Field Experiment in Japan". The Discussants for the paper were Kay Shimizu (Columbia University) and Karen Jusko (Stanford).

Harukata Takenaka from the National Graduate Institute for Policy Studies presented his paper on “Changes in Power of Japanese Prime Minister: Still Away from a Westminster Model.” Tsuneo Akaha (Middlebury Institute of International Studies at Monterey) and Kenji Kushida (Stanford University) were the discussants.

The fourth paper was “Territorial Issues and Support for the Prime Minister: A survey Experiment on Rally-‘Round-the Flag Effect in Japan” by Tetsuro Kobayashi (National Institute of Informatics, Japan) and Azusa Katagiri (Stanford), discussed by Tsuneo Akaha (Middlebury Institute of International Studies at Monterey) and Daniel Smith (Harvard).

The second day focused on political economy and international relations. Gene Park (Loyola Marymount University, and former Shorenstein Fellow at APARC) presented his paper co-authored with Saori Katada (University of Southern California) and Giacomo Chiozza (Vanderbilt University) entitled “Policy ideas and monetary policy: The Bank of Japan's delayed break with the monetary orthodoxy". Discussants were Azusa Katagiri (Stanford) and Ayako Saiki (De Netherlandsche Bank).

The second paper of the day was "The Political Economy of the Trans-Pacific Partnership: Implications beyond Economics" by Hiroki Takeuchi (Southern Methodist University), discussed by Kay Shimizu (Columbia University) and Gene Park (Loyola Marymount University). 

After lunch, Llewelyn Hughes (Australian National University) presented "Lead Markets, Vertical Specialization, and Standards Competition in Electric Vehicles" with discussants Kenji Kushida (Stanford University) and Phillip Lipscy (Stanford University). The final session was "Renegotiating the World Order: Institutional Change in International Relations” which were select chapters from a book manuscript by Phillip Lipscy (Stanford University). The discussants were Amy Catalinac (New York University) and Llewelyn Hughes (Australian National University). A group dinner followed the second day.

The third day was the kick-off for economics papers, where we also saw cross-disciplinary collaborations with colleagues from the US and Japan.

Karen Eggleston (Stanford University) presented “Medical spending and health care utilization in Japan, 2010-2014: Projections from Future Elderly Model microsimulation”, which was co-authored by Hawre Jajal (Stanford University), Brian K. Chen (University of Southern California), Hideki Hashimoto (University of Tokyo), Toshiaki Iizuka (University of Tokyo), Lena Shoemaker (Stanford University), and Jay Bhattacharya (Stanford University). Yong Suk Lee (Stanford University) was the discussant.

The second paper, "The adverse effects of value-based purchasing in health care: dynamic quantile regression with endogeneity" by Galina Besstremyannaya (Visiting Scholar, Stanford University), was discussed by Jay Battacharya (Stanford University) and Takeo Hoshi (Stanford University).

The third paper was ""How Do Agricultural Markets Respond to Radiation Risk? Evidence from the 2011 Disaster in Japan" by Kayo Tajima (Rikkyo University), Masashi Yamamoto (University of Toyama), and Daisuke Ichinose (Rikkyo University). Discussants for the paper presented by Tajima were Satoshi Koibuchi (Chuo University and Visiting Scholar, Stanford University) and Yong Suk Lee (Stanford University).

The final paper for the third day was "Shocks and Shock Absorbers in Japanese Bonds and Banks During the Global Financial Crisis" by Hyonok Kim (Tokyo Keizai University), Yukihiro Yasuda (Hitotsubashi University), and James A. Wilcox (University of California, Berkeley). Discussants were Sabrina Howell (New York University) and Suparna Chakraborty (University of San Francisco).

The final day included two papers. The first was "Impact of Financial Intermediary's Information Production on Market Value of Firm: Case Studies on the DBJ's Liquidity Providing During the Financial Crisis and the Environmental Rating of Firm" by Hiroaki Suzuoka (Development Bank of Japan), Atsushi Motohashi (Development Bank of Japan), Shinya Nakamura (Development Bank of Japan), Tomoya Maruoka (Development Bank of Japan), and Takamasa Uesugi (Development Bank of Japan), presented by Takamasa Uesugi. Discussants were Jess Diamond (Hitotsubashi University) and Masami Imai (Wesleyan University). The final paper was "Selective Disclosure: The Case of Nikkei Preview Articles" by William N. Goetzmann (Yale School of Management), Yasushi Hamao (University of Southern California), and Hidenori Takahashi (Kobe University), presented by Yasushi Hamao. Eiichiro Kazumori (University of Buffalo) was the discussant.

After the completion of four days of Summer Juku, participants who had enough time before their flights held an “uchiage” (completion celebration) gathering—a tradition at the conclusion of the Summer Juku—at “The Patio” in downtown Palo Alto for further informal exchange over drinks and appetizers.

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The participants of the Stanford Summer Juku held in August, 2015
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Abstract: The interactions between biological and cultural processes are critical determinants of human health. Successful public health programs must therefore be based on a synthesis of biological and anthropological research. By disentangling the impacts of behavior and biology on human health, we can update health care objectives and practices. Human movements and shifts in settlements across short and long time scales can result in misallocated health care resources and inefficient response to crises. I develop methods to quantify changing human population sizes and distributions to improve resource allocation in both routine health care settings and crisis response. This ranges from assessing health care system capacity for stable populations to outbreak control through vaccination and rapid response following population-scale disruptions due to natural disasters or political instability. This approach is also valuable in informing predictive mathematical models of human interactions and demographics to provide insight into a broader spectrum of human health issues. Here, I demonstrate these concepts specifically for the transmission and prevention of infectious diseases and access to health care in low-income settings ranging from rural Africa to urban America. 

 

About the Speaker: Nita Bharti is a Branco Weiss Society in Science fellow with an interdisciplinary background in Biology (PhD) and Anthropology (MA). She is a visiting scholar at Stanford’s Woods Institute of the Environment with a research associate appointment in the Biology Department and Center for Infectious Disease Dynamics at Penn State University. Her research integrates methods across social and natural sciences to identify and solve problems in human health, often in low-income settings. In addition to academic researchers across a wide variety of disciplines, her collaborators frequently include outreach and non-profit organizations as well as local authorities on public health and safety.

Nita Bharti Stanford Woods Institute for the Environment
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This paper is examines the evolution of Japan’s capital markets and the related regulatory reforms after the Global Financial Crisis. We start by looking at the importance of capital markets in the Japanese financial system. We study how the size of financial flows through capital markets relative to those through the banking sector changed since the 1980s in Section 2. Then, in Section 3, we look at how Japan’s financial system responded to the Global Financial Crisis. We find that the disruption of the financial system in Japan was small. Section 4 then surveys the financial regulatory changes in Japan since the Global Financial Crisis. While the Japanese regulators tightened the regulation to improve the financial stability as the regulators in the U.S. and Europe did, they also continued the efforts to develop capital markets in Japan. The efforts continue and receive strong endorsement from Abenomics, which put an emphasis on economic structural reform to restore growth in Japan. We examine the capital market policies in Abenomics in Section 5. Section 6 concludes.

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Takeo Hoshi
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This paper examines the evolution of Japan’s capital markets and the related regulatory reforms after the Global Financial Crisis. We start by looking at the importance of capital markets in the Japanese financial system. We study how the size of financial flows through capital markets relative to those through the banking sector changed since the 1980s in Section 2. Then, in Section 3, we look at how Japan’s financial system responded to the Global Financial Crisis. We find that the disruption of the financial system in Japan was small. Section 4 then surveys the financial regulatory changes in Japan since the Global Financial Crisis. While the Japanese regulators tightened the regulation to improve the financial stability as the regulators in the U.S. and Europe did, they also continued the efforts to develop capital markets in Japan. The efforts continue and receive strong endorsement from Abenomics, which put an emphasis on economic structural reform to restore growth in Japan. We examine the capital market policies in Abenomics in Section 5. Section 6 concludes.

The published version of this paper is available in The New International Financial System: Analyzing the Cumulative Impact of Regulatory Reform (World Scientific, 2016), please click here for more information on how to obtain a copy.

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Takeo Hoshi
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In 2006, the Chinese Government introduced a massive block grant program for rural compulsory education, similar to that of Title I grant in the United States. Central government provided block grants with add-on requirement to provincial governments based on total number of pupils, average per pupil spending in that province, and a cost-sharing plan that favors the economically backward provinces. Provincial governments then distributed the grants along with its own share to county government using a similar formula to cover school operating expenditures, free tuitions, and conditional cash transfers for boarding students.

 

While there have been plenty research on whether the program has buttressed the financing of rural education or crowded out local financing, little is known about its effects on the enrollment and education attainment of rural children after a decade  (Shi, 2012; Chyi & Zhou, 2014; Lü, 2014). This paper fills this glaring gap by using matched household survey data and county school expenditure data between 2000-2011 that were made available to researchers for the first time.

 

Our identification strategies are composed of three parts. First, we take advantage of the exogenous variation in the rates of cost-sharing in the two-step allocation process of the block grants to estimate “Intention to Treatment” effects of the whole program. Secondly, we compare counties receiving different proportion of subsidies from central government in a difference-in-difference framework. Thirdly, we use the IV-DID strategy that instruments the county-level education spending with the exogenous variation in the planned allocation of the grants.

 

Dr. Wei HA is currently Research Professor in Education Policy and Leadership at the Graduate School of Education and a faculty associate at the Institute of Education Economics at Peking University. Prior to joining the Peking University, he worked as policy specialists at UNICEF and UNDP for seven years in the United States and Africa. During his doctoral study at the Harvard University, he also served as a consultant at the World Bank. He has conducted research in a wide-range of fields including education economics, public health, migration, and development economics. His current research focuses on the impact evaluation of key national education policies in China such as the Rural Compulsory Education Finance Reform, and China’s efforts to build “World Class Universities” through the 211 and 985 Projects. He also examines the interaction between education and major social transformations in China such as the massive labor retrenchments at State-Owned Enterprises in the late 1990s and rising housing prices in urban China. Dr. Ha received a dual BA in Economics and Political Science and MA in Education Economics from Peking University and his PhD in Public Policy from Harvard University.

 

This event is cosponsored by the Rural Education Action Program (REAP).

Does Money Matter? The Effects of Block Grants on Education Enrollment and Attainment in Rural China
Wei HA Education Policy and Leadership at the Graduate School of Education and Institute of Education Economics at Peking University
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