Estimating the interest rate semi-elasticity of the demand for money in low interest rate environments

We estimate the time profile of the interest rate semi-elasticity of the demand for money that is theoretically derived from a money-in-the-utility-function (MIUF) model. This semi-elasticity increases to infinity as interest rates fall to zero. Therefore, the use of this semi-elasticity has an advantage when examining the highly interest-elastic demand for money in low interest rate environments. Using Japanese and U.S. data, we find that the semi-elasticity increases exponentially in low interest rate environments. For example, the highest value of the semi-elasticity in Japan is observed in 2005, and is approximately 350 times larger than the value in 1990.     

Till Death Do Us Part or I Get My Pension? Wives' Pension Holding and Marital Dissolution in the United States

Wives' financial independence gained from their pension may increase the risk of marital dissolution, especially when wives are approaching retirement age (the older wives' independence hypothesis). Applying single and simultaneous equations probit models to data from the Panel Study of Income Dynamics, we investigate the effect of wives' pension holding in 1984 on the risk of subsequent marital dissolution. Results from the single equation model appear to support the older wives' independence hypothesis. However, results from the simultaneous equations model suggest that interpreting the single equation results as a sign of older wives' economic independence may be misleading.
JEL classification : C 33; D 31; J 12; J 32     

Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef*

The discovery of bovine spongiform encephalopathy (BSE), commonly known as ‘mad cow disease’, in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers' willingness to pay (WTP) price premiums for BSE‐tested beef and estimate the mean WTP for BSE‐tested beef using data obtained from a consumer survey in Japan. A single‐bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE‐tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE‐tested beef.     

Testing for volatility spillover between the British pound and the euro

This paper examines volatility spillover between two nominal U.S. dollar exchange rates: the British pound and the euro. Using the residual cross-correlation approach, we observe that the euro Granger-causes the British pound in variance, whereas the British pound does not Granger-cause the euro in variance. Our findings support unidirectional volatility spillover from the euro to the British pound; thus, the euro volatility has a one-sided impact on the British pound volatility. Moreover, the findings suggest that euro traders succeed in the efficient processing of information derived from the British pound.     

Major categories of changes in food consumption patterns in Japan 1963–91

Abstract

The purpose of this paper is to categorize the major trends in Japanese food consumption patterns, and evaluate quantitatively the relative significance of each category in the period 1963–1991. Detailed examination of changes in per capita consumption of more than 100 individual food items for five sub‐periods led to the identification of four major categories or trends: quality, convenience, diversification, and health.

About 80% of cases fall under one of those four categories. In the first sub‐period, the trend towards foods of higher quality was the most important category, accounting for about 40% of all cases. Later, however, it gradually lost its relative significance. The lost share was taken over by diversification and the trend towards healthy foods. The trend towards more convenient types of food invariably accounted for about one‐third of all examined cases.

The analysis of the factors which induced these categories of changes led to the conclusion that incomes and prices decreased their influence over the food consumption patterns while sociological factors increased their significance.     

Budget impact analysis of long acting injection for schizophrenia in Japan

Abstract

Aims: To estimate the budgetary impact of providing additional reimbursement for long acting injections for schizophrenia patients in psychiatric hospital settings in Japan to improve patient outcomes in schizophrenia.

Methods: Budget impact analysis of change in reimbursement policy using a prevalence-based model over a five-year time horizon. The results are reported as net change in expenditure and consequent cost/savings in Japanese yen at the time of analysis.

Results: The budget impact analysis shows that an increase in reimbursement for LAIs could lead to cumulative savings of an estimated 36.6 billion JPY over five years. These savings result from a decrease in hospitalization costs and an increased usage of LAI (assumed to be 10%). Based on the sensitivity analysis, the saving estimates are most sensitive to change in market share of generic and branded oral antipsychotics.

Limitations: Historical data were used to estimate the future costs of drug and hospitalization; however, it is not the best predictor of future, hence a source of potential bias. A good level of treatment adherence with oral antipsychotics was assumed, which is generally not the case; therefore, we might have overestimated the effectiveness of oral atypical antipsychotics. Additionally, the drug cost due to reimbursement might have also been overestimated because in clinical setting, the increase of LAI use may not have reached 10% of the market share. Lastly, patients’ behavior was derived from models, which may have loosely approximated the reality.

Conclusions: An additional reimbursement for the use of LAI in schizophrenia patients is likely to be cost neutral/cost saving and should be considered as a policy option to improve patient outcomes and budget sustainability.     

Dynamic Microsimulation Modeling for Policy Support: An Application to Belgium and possibilities for Japan

This paper provides an overview of dynamic microsimulation modeling as well as its recent developments. It then discusses in detail a recent trend in microsimulation research, which uses alignment methodologies to simulate microsimulation models in conjunction with macro-economic models. The goal of this ??top down-integrated approach?? is to jointly assess the budgetary costs of demographic ageing and pension reform, as well as their consequences on the adequacy of pensions. This paper then discusses, also in detail, how such an integrated approach using shared demographic and macroeconomic assumptions has been developed in Belgium. It describes the dynamic microsimulation model MIDAS, highlighting how it aligns to the simulation results of the semi-aggregate model MALTESE. Finally, this paper suggests that the joint assessment using the joint application of two similar models might be useful to assess pension reform in the Japanese context.     

A Microsimulation Model for Projections of Japanese Socioeconomic Structure

The Integrated Analytical Model for Household Simulation (INAHSIM) is a microsimulation model for the Japanese population that was first developed in the 1980s as a tool for household simulation. This study attempted to improve the conventional INAHSIM in order to construct a more comprehensive alternative that incorporates a larger number of social and economic elements. It also overcame the problem for simulation—the lack of kinship relations in the initial population—by imputing parent-child relationships between those parents and children who do not live together. This paper provides an overview of INAHSIM and adds certain details of the imputation that is essential for simulating the life event of “adult children resettling to care for their aged parents.” In addition, I will show the importance of the said life event in Japan by comparing the difference in the family type of elderly people between its future distribution with or without this life event. Finally, I will discuss the future possibilities for research on microsimulation models that will play an important role in policy making.     

Solving/understanding/evaluating the e-waste challenge through transdisciplinarity?

Transdisciplinarity has been accepted as a promising research approach to respond to complex real-world problems such as electronic waste (e-waste). Already one of the fastest growing waste streams, e-waste is a sustainability challenge that shadows the pervasive uses of electronic devices in contemporary society. Previous studies have not only shown the toxicity and risks inherent in the hazardous waste but also economic value generated from its reuse and recycling and the environment justice implications of the existing transboundary movement of e-waste to developing countries. Responding to this multifaceted issue requires a transdisciplinary attempt at synthesis understandings, if not solutions. This paper reflects on an educational experiment to encourage disciplinary boundary crossing in the e-waste community through a summer school. The NVMP-StEP E-waste Summer School housed young researchers from diverse disciplines with a common research interest in e-waste. The event is evaluated against three sets of criteria that underpin successful transdisciplinary ventures: (i) clear, problem-oriented goals, (ii) careful preparation, institutional support and competent management, and (iii) communication and collaboration. Based on understandings and insights gained from the participation in the Summer School, participant surveys, and communications with organizers, six recommendations are outlined to help making similar events a better ground for transdisciplinarity in the future.