On the relationship between robustness to incomplete information and noise-independent selection in global games

This note demonstrates that a symmetric 3×3 supermodular game may fail to have any equilibrium robust to incomplete information. Since the global game solution in symmetric 3×3 supermodular games is known to be independent of the noise structure, this result implies that a noise-independent selection in global games may not be a robust equilibrium. Our proof reveals that the assumption in global games that the noise errors are independent of the state imposes a non-trivial restriction on incomplete information perturbations.     

INTRA-INDUSTRY TRADE AND NATIONAL ENTRY POLICY

Abstract.  This paper analyses entry policy in an open economy using an intra-industry trade model. Entry policy is the policy by which a government regulates the number of firms in the country. Implementation of this policy is accompanied by subsidies. In this paper, only one country implements this policy and the other country does not enforce any regulations. We show that the national entry policy makes both countries better off than they would be at the market equilibrium if a certain condition is met. This means that national entry policy is not necessarily a beggar-thy-neighbour policy.     

Optimal balanced growth in a general multi-sector endogenous growth model with constant returns

I will study a multi-sector endogenous growth model with general constant returns to scale technologies and demonstrate the existence, uniqueness and the saddle-path stability of the balanced growth equilibrium. I will first demonstrate the existence of a balanced growth equilibrium, by showing that the balanced growth rate associated with the balanced growth equilibrium is solely determined by solving a Frobenius root problem of the price equations derived from the Euler equations and the property of the nonsubstitution theorem. Then I will show the saddle-path stability of the balanced growth equilibrium without any capital intensity conditions, which is a generalized property proved in the two-sector endogenous growth models by de Guevara et al. (J Econ Dyn Control 21, 115–143, 1997), Bond et al. (J Econ Theory 68, 149–173 1996) and Mino (Int Eco Rev 37, 227–251 1996). The theorem clearly implies that the balanced growth equilibrium has a transition path in the neighborhood of the balanced growth equilibrium. The paper was presented at the conferences “Irregular Growth: Beyond Balanced Growth” held on June 19–21, 2003 in Paris and “Economic Growth and Distribution: On the Nature and Causes of the Wealth of Nations” held on June 16–18, 2004 in Lucca, Italy. From the discussion with Alain Venditti at CNRS-GREQAM, Gerhard Sorger at University of Vienna and the conference participants, I have been benefited much by writing this paper. Especially Alain Venditte had given me a chance to take a look at his unpublished paper titled ” Indeterminacy and the Role of Factor Substitutability” jointly written with Kazuo Nishimura at Kyoto University and published in Macroeconomic Dynamics, Vol. 8. The author also would like to thank an anonymous referee for useful suggestions.     

Pricing Discrete Barrier Options Under Stochastic Volatility

This paper proposes a new approximation method for pricing barrier options with discrete monitoring under stochastic volatility environment. In particular, the integration-by-parts formula and the duality formula in Malliavin calculus are effectively applied in pricing barrier options with discrete monitoring. To the best of our knowledge, this paper is the first one that shows an analytical approximation for pricing discrete barrier options with stochastic volatility models. Furthermore, it provides numerical examples for pricing double barrier call options with discrete monitoring under Heston and λ-SABR models.     

Qualitative and quantitative studies of leadership in multinational settings: Meta-analytic and cross-cultural reviews

Much of the research on leadership has been conducted by Western researchers and has led to a largely Western and individualistic perspective on leadership. This has led researchers to raise questions concerning the extent to which these theories apply globally. In particular, do Western theories of leadership apply to the same extent in more communal Asian countries, such as Japan, China, Indonesia, and Thailand? Based on leadership studies conducted in Japan, we argue that Japanese leadership practices often differ from the styles practiced widely in the West. These differences in behavior have their roots in Japanese cultural traditions and business practices. Our conclusion is based on the results of meta-analyses of studies of the five most popular leadership theories used in the West, an empirical study of transformational and gatekeeper leadership, and in-depth qualitative case studies of three Japanese corporate leaders. We observe that there are relatively few qualitative studies of leaderships in international contexts, and propose that in order to understand leadership phenomena in a global context, it is necessary to take a triangulation approach, employing surveys, experimental manipulations, company records, and qualitative interviews.     

Evaluation of the impact of the tourism nation promotion project on inbound tourists in Japan: a difference-in-differences approach

This study quantitatively evaluates the impact of the Tourism Nation Promotion Project on tourism demand. Data were obtained from Japan Tourism Agency’s quarterly survey from 2010Q2 to 2015Q4. Cox and zero-truncated negative binomial models and difference-in-differences approach were applied to analyze tourism demand and the project’s impact on inbound tourists’ length of stay and expenditure in Japan. Empirical results showed a positive and significant average treatment effect on length of stay and expenditure for tourists from Australia, China, Russia, and Thailand. These findings indicate that the Japanese government should use differentiated strategies considering different nationalities’ characteristics to attract foreign tourists.     

Accounting System Reform in Japanese Local Governments

The New Public Management (NPM), of which the change from cash accounting to accrual accounting is considered an important tool, has been in fashion in many developed countries. Japanese governments, however, have preserved control of expenditures on a cash basis, though recently financial management reforms in local government have begun to adopt NPM ideas. Using a contingency framework which views the reform of accounting sub-systems (management accounting, financial accounting and auditing) as stimulated by a combination of internal and external pressures, this paper explores why Japanese local governments managed to survive without accrual accounting and the prospects for further reform in the future. It is suggested that system change itself can be accomplished by internal pressures, in the form of mandated policies, alone but that sustained external pressures by citizens are required in order to achieve the intended outcomes of accounting reform.     

On sooner and later waiting time distributions associated with simple patterns in a sequence of bivariate trials

In this article, we study sooner/later waiting time problems for simple patterns in a sequence of bivariate trials. The double generating functions of the sooner/later waiting times for the simple patterns are expressed in terms of the double generating functions of the numbers of occurrences of the simple patterns. Effective computational tools are developed for the evaluation of the waiting time distributions along with some examples. The results presented here provide perspectives on the waiting time problems arising from bivariate trials and extend a framework for studying the exact distributions of patterns. Finally, some examples are given in order to illustrate how our theoretical results are employed for the investigation of the waiting time problems for simple patterns.