THE IMPACT OF ASSET SECURITIZATION: A PERSPECTIVE FOR INVESTORS

A securitization transaction creates a new set of analytical challenges for both investors in the asset backed securities (ABS) and for holders of the debt and equity of the sponsor. This article argues that investors can gain insights into the risk and expected rewards of both ABS and the sponsoring corporation's securities by focusing on the excess cash flow (or "residual interest") that is expected to be generated by the ABS trust. The value of this residual interest is recognized as a one-time gain by the sponsoring lender in the period the ABS transaction is closed. Because the assumptions used to calculate this gain should represent management's best estimates as to the performance of the loan pool, comprehensive analysis of the gain-on-sale calculation can provide both corporate and ABS investors with significant insight into the level of risk in the securities they own. It also offers a tool for determining whether the expected returns justify the risks.     

Existence of equilibrium configurations of competitive firms on an infinite two-dimensional space

This paper analytically examines the existence of equilibrium configurations of competitive firms on an infinite two-dimensional space. It is shown that the Löschian configuration (a regular-hexagonal lattice) and a square lattice are in global equilibrium; the Löschian configuration is in the strongest global equilibrium among the regular lattices (in this sense, spatial competition leads to the social optimum); and the so-called back-to-back configuration is not in equilibrium. These results are in marked contrast to those obtained from a one-dimensional model, implying that spatial equilibrium configurations in a two-dimensional space should not be inferred only from one-dimensional models frequently employed in spatial economics.     

A dynamic von Thünen model with a demand function

This paper examines the dynamic processes of agricultural land use in the context of the von Thünen model. Consumers purchase agricultural goods to maximize their utility levels; farmers plant agricultural goods only once in a year and they decide their land use according to the last year's prices. In this context, it is first shown that land use is generally unstable for a broad class of utility functions, although the equilibrium land use is achieved in a very specific case. Second, it is shown that under a certain condition, land use changes cyclically with 2-year intervals.     

Does better information about foreign shocks improve monetary policy?

This paper examines whether better information about foreign shocks leads to welfare-improving monetary policy using a stylised two-country New Keynesian general equilibrium model. We demonstrate that when terms of trade externality exist and national central banks have the incentives to shift terms of trade in their own favour, the equilibrium under imperfect information may be welfare superior relative to an equilibrium with perfect information. In addition, the welfare gains or losses from information sharing between central banks are found to be small for empirically plausible range of parameters for risk aversion and elasticity of labour supply.     

Alternation of parties in power and economic volatility: testing the rational partisan hypothesis and policy learning hypothesis

Right and left parties have distinct macroeconomic preferences that could create different levels of volatility during their executive tenures. But rational partisan theory argues that, because actors in the economy anticipate ruling party behavior, partisan differences only matter when election outcomes are uncertain. We argue that policy risk from ruling parties extends beyond elections, leading to important variation in growth volatility that occurs during a ruling party’s tenure. Building on theories of policy risk and learning, we argue that after elections, economic actors still face uncertainty about the policies of new ruling parties. With time in power, new ruling parties build policy track records, reducing policy risk and, thus, volatility. We estimate a learning curve model of ruling party duration’s effect on the variation in quarterly GDP growth rates. Using data from 44 democracies between 1981 and 2009, we find that learning processes extend beyond the conclusion of uncertain elections.     

A theoretical comparison of the opportunity and gravity models

This paper compares the opportunity model with the gravity model from a theoretical view- point. First, based on a reexamination of Schneider's model, the ‘perceived opportunity model’ is proposed as a generalization of Schneider's model. Second, the similarity of the opportunity and gravity models is examined. In particular the condition of the opportunity model behaving like the gravity model is presented. Third, the difference of these models is investigated in terms of certain general model-theoretic properties. The behavioral ‘sensitivity’ of each model to spatial configuration changes is revealed by these properties.     

Changes in Japanese managers' work values and attitudes: a comparison of 1995 and 2009

The aim of this study is to investigate how the work values and attitudes of Japanese managers changed between 1995 and 2009. In the last 15 years, the economic environment has drastically changed in Japan and resulted in profound changes in companies' structures and HR practices. In response to such changes, Japanese managers' work values and attitudes toward employing organizations have also changed. Traditional Japanese management systems and practices, which once sustained the competitiveness of Japanese firms are no longer suitable. A new management model must be implemented to fit the changing competitive environment and managers' new work values.     

Relationship Between Domestic Research and Development Activity and Technology Importation: An Empirical Investigation of Japanese Manufacturing Industries

This paper investigates the relationship between domestic research and development (R&D) activity and technological importation. We estimate the elasticity of factor inputs with respect to input prices using a cost minimization framework and time series data for Japanese manufacturing industries over the 1971–2000 period. The results show that domestic R&D activity and imported technology correlate with each other in the R&D-intensive industries, and the relationship is affected by the characteristics of the industry. Moreover, it is found that domestic R&D activity tends to be correlated with capital saving, while imported technology tends to be correlated with increased capital formation and employment.     

Trade Creation and Diversion Effects of Regional Trade Agreements: A Product‐level Analysis

This paper examines the impacts of regional trade agreements (RTAs) on trade flows at product level, with a particular focus on trade creation and diversion. Based on estimation of the gravity equation, dealing with the zero trade flows and endogeneity bias problems, we analyse the impacts of various types of RTAs involving 67 countries for 20 products during the 1980–2006 period. We find that RTAs among developing countries tend to cause trade diversion compared with RTAs among developed countries. Taking the higher external tariff rates of developing countries compared with developed countries into consideration, our results suggest trade diversion is likely to be caused by remaining high tariffs on imports from non‐members. In addition, we find the trade creation effect for many products in the cases of Customs Unions and plurilateral RTAs. These results imply that trade creation would be caused by various factors besides the reduction in tariff rates. Based on these results, we draw a policy implication that external tariff rate reduction is an important factor in avoiding trade diversion in the formation of RTAs, in particular for RTAs among developing countries, while a large number of members and the common external tariff appear to be important for generating the trade creation effect.     

Factors related to food safety culture among school food handlers in Tokyo,Japan: a qualitative study

The purpose of this research was to qualitatively explore factors influencing the food safety culture in school meal services from the perspective of school food handlers (i.e., cooks, dietitians). Six in-depth, semi-structured focus group interviews were conducted with of school food handlers (n = 32). Thematic analysis was used to extract meaning from the data. Findings demonstrated that the following multi-level factors influenced the food safety culture of school meal services: (1) individual; (2) organization; (3) environment; (4) management; and (5) management style. These factors may be useful for effectively and strategically improving the food safety culture for food handlers in school meal services.