Targeted saving by renters for housing purchase in Japan

This paper examines the extent to which wealth accumulation for housing purchase increases household savings and suppresses consumption. The study employs an estimation method based on simultaneous equations with limited dependent variables developed by Nelson and Olson to examine the relationship between wealth accumulation and housing purchase plans, using data relating to young Japanese renters. The estimation results provide evidence that young Japanese households severely reduce their consumption by around 30–40 percent.     

The Optimal Penal Code vs. Infinite Nash Reversion in Trade Liberalization

This paper derives Abreu's stick-and-carrot strategy optimal penal codes ( Journal of Economic Theory , 1986, 191–225 in a partial equilibrium model that has been widely used to examine trade liberalization. Unless the asymmetry between countries is significant, the optimal penal codes take a simple form. It is also shown that the difference between the most-cooperative pairs of tariffs supported by two schemes, the optimal penal code and infinite Nash reversion, depends crucially on the size of the surplus from exports that a deviating country forgoes when the other country places an embargo, rather than the (punitive) optimum tariff, on imports in the punishment.     

Equity market and foreign capital

Abstract .  I present a model that demonstrates that the market mechanism is not always effective in stabilizing an open equity market. Foreign capital inflows create multiple equilibria in the equity market, which may simultaneously trigger a currency crisis as well as an equity market crash even if the equity market is well developed.     

Relationship between the curriculum system and the understanding of nutritional terms in elementary school children

To clarify the relation between the curriculum system and the understanding of nutrition terms, 944 students aged 8–12 years living in Japan, the USA and the UK, were asked about the recognition, medium for recognition, and understanding of nutrition terms. The effect of nutrition education from an early stage in elementary schools in the UK and the USA was confirmed. These results suggest the possibility of beginning nutrition education earlier in the elementary school in Japan. American students had paid attention to food labels. These results showed that a learning and teaching strategy founded on comprehensively based subjects in the USA had influenced good behaviour for dietary life. On the other hand, there was not a relationship between an understanding of nutrition terms and a developmental stage. Many students in three countries were influenced by television commercials to buy candy or soda. We think that it is important to develop a curriculum that includes practical learning and ensures hours of teaching for the purpose of acquirement of nutritional knowledge. It is also necessary to encourage critical thinking skills to evaluate television commercial messages through school lessons.     

Sectoral Price Movements under the Yen Appreciation

This paper analyzes the movements of tradable goods prices in Japan. The import price indices and the export price indices are matched with the domestic wholesale price indices at the most detailed level available for Japan, and the pricing behavior in the yen appreciation period (1985–1995) is examined. In the import-side analysis, we investigate how far the price movements under currency appreciation deviate from the law of one price. We find that internal–external price differentials have surprisingly expanded for most of the products since 1985. For a number of commodities, the import prices do not decline as far as the exchange rate appreciates, and the domestic wholesale prices do not decrease as far as the import prices decline. Although the expanded price gaps cannot necessarily be interpreted as a result of deliberate trade barriers, they suggest that some sort of handicap is imposed on imported goods and the large fraction of rent generated by the yen appreciation is intercepted in the middle. In the export-side analysis, the relationship between the globalization of firms' activities and export pass-through is investigated. Our cross-sectional regression analysis indicates that the export path-through rates tend to be low when the value added ratios of foreign production of Japanese firms are high. Low export pass-through under currency appreciation is often interpreted as a result of firms' attempts to keep their foreign market share, but the globalization of firms' activities may be another important factor in lowering the pass-through.J. Japan Int. Econ.,December 1997,11(4), pp. 611–641. Department of Economics, Keio University, 2-15-45 Mita, Minato-ku, Tokyo 108, Japan.     

Challenges to elderly safety in Safe Community movements in Japan

In Japan, with the longest life expectancy in the world over the last two decades, a great emphasis has been placed on the safety of the elderly, which has in turn influenced their well-being. Meantime, the concept of Safe Community (SC) has drawn more attention as one of the potential measures to sustain and improve the health conditions of the elderly. In hope of improving the effectiveness and efficiency of current efforts for elderly safety, the SC model is expected to provide features with which communities can make the better use of current limited resources. This article examines how the SC model makes a difference in these efforts by utilising existing programmes and how elderly safety can be promoted at the community level. Six communities working safety promotion based on the SC model were selected for the study. Although there are limitations to the information due to the insufficient experience in SC in Japan, it was found that two features make SC significant in promoting safety: (1) systematic evidence-based plan-do-check-action processes and (2) a framework of cross-sectoral collaboration. However, to examine and identify the effectiveness of SC on elderly health, further observation is required to develop strategies while accumulating longitudinal data.     

The associations of soil fertility and market access with household income: Evidence from rural Uganda

This study attempts to identify the major factors affecting farm and nonfarm income by using panel data of 894 rural households, interviewed in 2003 and 2005 in rural Uganda. We supplement the panel data with household-level soil fertility data and road distance data to the nearest urban center on three road types: tarmac, loose-surface, and dirt roads. The results suggest that soil fertility, measured by the soil organic matter (SOM) content, is positively associated with crop income but not with livestock and nonfarm income. We also find that the total road distance to the nearest urban center and the road quality have strong negative associations with the crop income.