Fiscal stimulus effectiveness in Japan: evidence from recent policies

This article examines the effects of Japanese fiscal policy after the 2008 global financial crisis using a mixed vector autoregression/event study approach. We focus on the effects of stimulus packages with environmental benefits. The empirical results show that a tax break and subsidy programme designed to promote the adoption of eco-friendly cars helped stimulate automobile production, while a similar programme intended to promote the purchase of energy-efficient appliances had no effect on appliance production.     

The effects of fiscal policy in the 1990s in Japan: A VAR analysis with event studies

This paper examines the effects of Japanese fiscal policy during the 1990s. A mixed vector autoregression (VAR)/event study approach is used for this purpose. The first empirical finding is that in the late 1990s, the negative effect of fiscal policy was larger and more persistent than the positive effect. This finding suggests that the large fiscal expansions in the late 1990s were inadequate for stimulating the macroeconomy in terms of the size and persistence of their policy effects. The second finding is that the permanent tax cuts implemented in the former part of the 1990s increased consumer durable spending significantly and persistently. This increase may reflect consumers’ incentive to spend before the increase in the consumption tax rate in April 1997.     

Trait perceptions influence economic out-group bias: lab and field evidence from Vietnam

Group favoritism is typically directed toward in-group members and against out-group members, but these cross-group effects often vary. Little is known about why group effects on economic choices vary. We use a survey method developed in social psychology to measure stereotyped attitudes of one group toward another. These attitudes are then associated with prosociality in five experimental games (also using an unusual amount of individual-level sociodemographic control). We present evidence from an artificial field experiment of a majority group with high status (Vietnamese) exhibiting no disfavoritism toward a lower-status out-group (Khmer) and typical disfavoritism to a second out-group (Chinese). Both Vietnamese and Chinese groups see the Khmer as warm but incompetent, attitudes which seem to activate empathy rather than contempt. The results suggest that measuring between-group stereotype attitudes can be used to predict the sign of cross-group favoritism in other natural settings.     

Medical cost,incidence rate,and treatment status of gastroesophageal reflux disease in Japan: analysis of claims data

Objectives: Published reports have shown the prevalence and incidence of gastroesophageal reflux disease (GERD) is increasing in Japan. The objective of this study is to examine change in GERD incidence, and to understand current patient demographics, medical costs, treatment status, and the suitability of current treatment based on analysis of an insurance claims database.

Methods: An insurance claims database with data on ～1.9 million company employees from January 2005 to May 2015 was used. Prevalence, demographics, and medical costs were analyzed by cross-sectional analysis, and incidence and treatment status were analyzed by longitudinal analysis among newly-diagnosed GERD patients.

Results: GERD prevalence in 2014 was 3.3% among 20–59 year-olds, accounting for 40,134 people in the database, and GERD incidence increased from 0.63% in 2009 to 0.98% in 2014. In 2014, mean medical cost per patient per month for GERD patients aged 20–59 was JPY 31,900 (USD 266 as of January 2016), which was ～2.4-times the mean national healthcare cost. The most frequently prescribed drugs for newly-diagnosed GERD patients were proton pump inhibitors (PPIs). Although PPIs were prescribed more often in patients with more doctor visit months, over 20% of patients that made frequent doctor visits (19 or more visits during a 24 calendar months period) were prescribed PPIs during only 1 calendar month or not at all.

Limitations: The database included only reimbursable claims data and, therefore, did not cover over-the-counter drugs. The database also consisted of employee-based claims data, so included little data on people aged 60 years and older.

Conclusions: Given the increasing incidence of GERD in Japan there is a need for up-to-date information on GERD incidence. This study suggests that some GERD patients may not be receiving appropriate treatment according to Japanese guidelines, which is needed to improve symptom control.     

Important attributes of lodgings to gain repeat business: A comparison between individual travels and group travels

The purpose of this study is to investigate the attributes of the satisfaction that are related to the lodging-guests’ tendency to revisit the lodgings and to compare these attributes among the different travel styles, such as individual travel, travel with friends or as a couple, and travel with family. We examine 6351 guest evaluations from a highly popular travel reservations website. Multinomial logistic regression analyses are performed and they show that the important attributes for lodgings to gain repeat business vary among their guest's travel styles.     

Public investment and business cycles: The case of Japan

This paper examines the effect of public investment on macroeconomic fluctuations in Japan by comparing the effects of central and local government investments. Impulse response functions show that central government investments slightly but persistently stimulate industrial production, while local government investments have no positive impact on business cycles. In terms of policy effectiveness, these results suggest that the Japanese government should not employ local public sector investments as a policy instrument for economic stabilization.     

Public investment and regional business cycle fluctuations in Japan

This article examines the relationship between public investment and regional business cycle fluctuations in Japan. In particular, we focus on the effects of ‘discretionary’ changes in public investment, a portion of investment unrelated to the current state of macroeconomic circumstances. The empirical results show that such portions of public investment amplify regional business cycle fluctuations.