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September 11, 1995
[SSJ: 262] P-A Theory and Power
From: Nobuhiro Hiwatari
Posted Date: 1995/09/11
Although I've read only a bit about principal-agent theory, I really didn't "get
it" until I read the piece by Mathew McCubbins and Greg Noble ("The Appearance
of Power") in Cohwey & McCubbins (eds.), *Structure and Policy in Japan and
United States* (Cambridge UP, 1995). I assume many on this list have already
read the book, but for those who haven't it is highly commendable because it
allows laymen like me to get at least an idea what principal-agent theory is
about.
The only problem I had (but please note I am a layman) with the McCubbins &
Noble piece is that it is impossible to disagree (the same goes for the Ramseyer
& Rosenbluth book, chapter 6---although one might refute some of the evidence of
chapter 7). That is, it almost impossible to imagine cases of legislative (or
ruling party) "abdication" of power to the bureaucracy. Even the works of those
criticized for taking the "abdication view" are cited to prove that "delegation"
is the case. Johnson, Campbell, Inoguchi and others could be criticized for
overstating their arguments but clearly anyone reading their cases (with a bit
of common sense) will see that neither the Diet nor LDP "abdicated" its powers.
So if the point of PA theory is to say that there is no case of "abdication"
anywhere, it seems a bit of a red herring to me. Because what has been debated
in the field is the nature of "delegation" and differences in "delegation" (or
permitted agency "slack"), although the arguments were not couched in these
terms. Even in the notoriously conservative lectures at Japanese universities, I
don't think anyone takes seriously nowdays the cultural or elitist arguments but
as a footnote in explaining the development of the field.
So, I'd be more interested if anyone will tell me where PA theory will take us
from merely saying that the bureaucrats are agents of the ruling party(ies) or
the legislature.
Nobuhiro Hiwatari
Approved by ssjmod at 12:00 AM