Katsuhito Iwai - Biography - Contributions

Contributions

Katsuhito Iwai is known to have integrated Knut Wicksell's theory of cumulative process and J. M. Keynes' theory of effective demand.He has demonstrated that, if, in a monetary economy, prices and wages are flexible, a deviation from equilibrium inevitably produces firms' expectational errors and starts a dynamic process that drives prices and wages cumulatively away from equilibrium. He has then argued in opposition to the neoclassical view of the self-regulating nature of laissez-faire market mechanism, that what stabilizes the monetary economy is the inflexibility of money wages and that an equilibrium it gravitates to almost never achieves full-employment. He has proven that the trade-off between unemployment and inflation never ceases to exist no matter how long the time span.

Katsuhito Iwai is often cited for his formulation of a bootstrap theory of money. Everybody uses money as money, Iwai writes, because everybody else uses money as money. He has offered proof, in his search-theoretic model of decentralized exchanges, that, to sustain itself as an equilibrium, the monetary system requires no "real" conditions.

Iwai is credited with constructing mathematical models of Schumpeterian evolutionary processes that describe how large numbers of firms interact with one another, by competing to innovate, trying to imitate and struggling to grow. Over a long span of time, Iwai argues, what the economy approaches is not a neoclassical equilibrium of uniform technology, but at best a statistical equilibrium of technological disequilibria. Profits in excess of normal rate, therefore, never vanish from the economy.

Iwai has also built a new theory of the corporation and of corporate governance. According to Iwai's famed characterization, business corporation is an entity consisting of two-tier ownership relations. The shareholders own the corporation as a legal thing, and the corporation as a legal person owns the corporate assets in turn. This person-thing duality of the corporation, Iwai states, is behind the age-old controversy over what the essence of corporate personality is. The person-thing duality of the corporation also causes what we observe among the contemporary advanced capitalist economies around the world in terms of their highly varied corporate structures.

In light of these theorizations, Iwai has revived the traditional principle of corporate governance where the managers' fiduciary duties toward the corporation serve as its very foundation. In recent years, Iwai has been known to be involved in his attempts at developing a non-contractual theory of fiduciary law.

Read more about this topic:  Katsuhito Iwai, Biography

Other articles related to "contributions":

IEEE Heinrich Hertz Medal - Recipients
... fundamental theoretical and experimental contributions to the engineering formulation of electromagnetic field theory ... Wait (University of Arizona, United States) for fundamental contributions to electromagnetic theory, to the study of propagation of Hertzian waves through the atmosphere ... United Kingdom) for major original contributions to the theory of electromagnetic waves in ionized media with applications to terrestrial and space communications ...
Andrew Romanoff - 2010 U.S. Senate Election - Policy Positions - Government Ethics and Reform
... (PAC) money, instead relying on individual campaign contributions ... numerous speeches that he believes there is an inherent conflict in elected officials taking contributions from industries they are supposed to regulate ... elected officials such as Russ Feingold have limited their contributions in various ways, the only other federal candidates of note to eschew all PAC contributions are ...
Pensions In The United Kingdom - Individual or Personal Pensions
... is also possible for an individual to make contributions under an arrangement they themselves make with a provider (such as an insurance company) ... Contributions are typically invested during an individual's working life, and then used to purchase a pension at or following retirement ... the member is allowed to direct what their contributions should be invested in) ...
Joseph Pitton De Tournefort - Contributions
... Tournefort is often credited with being the first to make a clear distinction between genus and species ... Though he did indeed cluster the 7,000 plant species that he described into around 700 genera, this was not particularly original ...
Joel Lebowitz - Contributions To Science
... Lebowitz has had many important contributions to statistical mechanics and mathematical physics ... recognitions, Lebowitz was awarded the Max Planck Medal in 2007 "for his important contributions to the statistical physics of equilibrium and non-equilibrium ...