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Veblen's Theory of Institutional Change: An Explanation of the Deregulation of Japanese Financial Markets
Author(s) -
Raines Patrick,
Leathers Charles G.
Publication year - 1995
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1995.tb03439.x
Subject(s) - veblen good , deregulation , liberalization , economics , context (archaeology) , institutional economics , financial market , neoclassical economics , market economy , finance , paleontology , biology
A bstract In his 1915 essay “The Opportunity of Japan,” Thorstein Veblen theorized that traditionai Japanese institutions would undergo evolutionary change as Japan exploited borrowed industrial technology and became integrated into the global business enterprise system. This article explains the recent liberalization of Japanese financial markets which followed Japan's rise to economic prominence within the context of Veblen's theory of institutional development of the enterprise system. The Japanese process of financial deregulation is reviewed, Veblen's predictions Japan are presented and an explanation provided for the liberalization of Japanese financial markets .