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Japan's Great Kantō Earthquake of 1 September 1923 devastated the area around Tokyo and the country's main port of Yokohama. This article uses the earthquake as a case study to inform our understanding of the economics of disasters and the history of market integration. It seeks to test two main assumptions: first, that shifting demand and supply curves consequent on a disaster will have some impact on prices; and second, that any local changes in the disaster region are likely to be diffused across a wider geographical area. We make use of a unique monthly wholesale price dataset for a number of cities across Japan, and our analysis suggests three main findings: that price changes in the affected areas immediately following the disaster were in most cases reflected in price changes in Japan's provincial cities; that cities further away from the devastation witnessed smaller price changes than those nearer to the affected area; and that the observed pattern of price changes reflects the regional heterogeneity identified by scholars who have worked on market integration in Japan. [ABSTRACT FROM AUTHOR]

Abstract: This article studies the interrelation between spot and futures prices in the two major rice markets in prewar Japan from the perspective of market efficiency. Applying a non‐Bayesian time‐varying model approach to the fundamental equation for spot returns and the futures premium, we detect when efficiency reductions in the two major rice markets occurred. We also examine how government interventions affected the rice markets in Japan, which colonized Taiwan and Korea before the Second World War, and argue that the function of rice futures markets crucially depended on the differences in the structure of rice spot markets. Initially the increased volume of imported rice of a different variety from domestic rice disrupted the rice futures markets. Then, government intervention in the rice futures markets failed to improve the disruption. Changes in colonial rice cropping successfully mitigated the disruption, and colonial rice was promoted in order to unify the different varieties of inland and colonial rice. [ABSTRACT FROM AUTHOR]

The Japanese aircraft industry, which was very small scale before the Second World War, became Japan’s largest manufacturing industry by the end of the war. This article explores the basis for the growth of the aircraft industry during this time by focusing on Mitsubishi Heavy Industries Company’s No. 5 Works. It was revealed that during the war, the supply of basic inputs increased substantially: labour force, equipment, and ‘machinery parts’ were in sufficient supply and none of these was a binding constraint on production. The binding constraint existed in the supply of ‘special parts’. In other words, aircraft production expanded as the supply of special parts increased. This increase in the supply of special parts and still faster growth in the supply of machinery parts came about through the expansion of the supplier network in terms of both the number of suppliers and the geographical area in which they were located. These findings imply that outsourcing played a key role in the growth of aircraft production in wartime Japan. [ABSTRACT FROM AUTHOR]