Financial crises,bank risk exposure and government financial policy

A macroeconomic model with financial intermediation is developed in which the intermediaries (banks) can issue outside equity as well as short term debt. This makes bank risk exposure an endogenous choice. The goal is to have a model that can not only capture a crisis when banks are highly vulnerable to risk, but can also account for why banks adopt such a risky balance sheet in the first place. We use the model to assess quantitatively how perceptions of fundamental risk and of government credit policy in a crisis affect the vulnerability of the financial system ex ante. We also study the effects of macro-prudential policies designed to offset the incentives for risk-taking.     

Internet resources and capabilities: Japanese SME risk-taking,industry and performance

This study investigates how Internet-related resources and capabilities are influencing performance in Japanese small- and medium-sized enterprises (SMEs). We use a structural equation modelling approach to test these relationships between Internet readiness, Internet capability, risk-taking perceptions and performance within Japanese SMEs (350 SMEs). Unlike other counterpart countries, such as South Korea, Japanese SMEs have been relatively slow in implementing Internet technologies into business practice. However, the results indicate that if Japanese SMEs allocate appropriate resources and deploy Internet capabilities these firms will benefit with performance gains. Further, we find that both the perception of risk-taking and the industry in which the firm operates are key factors in either inhibiting or enhancing the firm’s ability to leverage Internet-related capabilities for firm performance.     

Alternative concepts of management: Insights from asia and africa

Some Asian and African concepts including the logic of mutual benefit among heterogeneous elements, polyocular vision, self-heterogenization, ability to think in one another's mind, interpersonal aidaschaft, situational adaptability and overlapping responsibility are compared with the European and North American concepts of unity by homogeneity, individual identity, boundary, specialization, separation, opposition, hierarchy, tension and extension.The author is Visiting Professor of International Business and Business Policy at the National University of Singapore.     

Social and political interactions among extraterrestrial human communities: Contrasting models

With the advent of the era of extraterrestrial communities, we have reached the stage of our civilization where many of the constraints which restrict the life on the Earth are removed. Temperature, humidity, seasons, length of day, weather, artificial gravity and atmospheric pressure can be set at will, and new types of cultures, social organization and social philosophies become possible. We will be in a position to first invent new cultural patterns and new social philosophies and then choose material conditions and community design to fit the desired cultural goals and philosophies. The purpose of this article is to discuss various alternative models of the political and social interactions among the extraterrestrial communities in order to make intelligent choices among the alternatives. This article consists of two parts: The first part deals with various types of interactions among extraterrestrial communities and how they correspond to various epistomologies. The second part deals with the fact that homo sapiens has developed an ability, abnormal compared to other animals, to wage wars, and how this ability must be counteracted by another ability for long-range optimization which cannot be obtained by a succession of short-range optimizations.     

Numerical Approach to Asset Pricing Models with Stochastic Differential Utility

In this paper employing two heuristic numerical schemes, we study the asset pricing models with stochastic differential utility (SDU), which is formulated by either of backward stochastic differential equations (BSDEs) or forward-backward stochastic differential equations (FBSDEs).The first scheme is based upon a traditional lattice algorithm of option pricing theories, involving the discretization scheme of coupled FBSDEs, which is combined with a technique of solving numerically a certain type of nonlinear equations with respect to the backward state variables. The second one is based upon the four step scheme of Ma et al. (1994) which solves quasi-linear partial differential equations associated with the FBSDEs. We demonstrate that our practical implementation algorithms can successfully solve the asset pricing models with generalized SDU and the large investor problem with market impact which are typical examples such that the usual four step scheme is difficult to implement. As other numerical applications we study the optimal consumption and investment policies of a representative agent with SDU, and the recoverability of preferences and beliefs from observed consumption data.     

Economic Regulation in the Consumer Loans Market

Atlantic Economic Journal - This paper models a consumer loan market with a vertical structure where an upstream monopolist supplies funds to downstream nonbanks. The nonbanks supply funds to...     

Within-group heterogeneity and civil war

This study offers a bargaining model of conflict in which the government offers a transfer to an opposition group to preclude civil war. Members of the opposition are heterogeneous in income and ideology, and heterogeneity generates disagreement about whether to accept the government’s offer. We assume that the probability that the government’s offer will preclude conflict increases continuously with the number of opposition group members who agree to accept it. When within-group heterogeneity is large, the number of members who are receptive to the government’s offer is less responsive to an increase in the transfer level. In this situation, the government must substantially increase its transfer to attract the support of the opposition. Subsequently, as peace becomes more costly for the government, negotiations are likely to break down.     

REGIONAL WATER FOOTPRINTS OF THE YANGTZE RIVER: AN INTERREGIONAL INPUT–OUTPUT APPROACH

Recently, researchers have applied the multi-regional input–output (MRIO) approach to water footprint (WF) analysis. The concept of interregional input–output (R-MRIO) was developed to analyse regional issues. Researchers have concentrated on the development of global or international input–output (N-MRIO) tables. Using the N-MRIO and the R-MRIO approach allows the study of global and regional issues, respectively. The WF is an indicator influenced by trade among nations and regions. However, the treatment of imports in an R-MRIO approach differs in whether international imports are separated or combined. We evaluate the effects of the difference between these models and discuss policy implications for the Yangtze River, China. The WF calculated using the combined type model is 11% larger than that by the separated type model. This difference can be ascribed to international imports, mainly internal consumption and interregional trade. We find that this difference affects social equity in water-abundant areas.     

Gender and empowerment: assessing discrepancies using the resident empowerment through tourism scale

While gender equality and empowerment are core components of sustainable tourism, most of the literature has approached the concepts from qualitative perspectives, thus limiting the ability to empirically test for empowerment discrepancies between men and women. With this gap in mind, this study sought to test the widely held notion that empowerment discrepancies exist between men and women in tourism development. Discrepancies in psychological, social and political empowerment were tested for using the 12-item Resident Empowerment through Tourism Scale (RETS). The RETS was administered across five sample populations, with results revealing that gender discrepancies were present, but surprisingly, not in the direction suggested in previous literature. In all three US samples, there was evidence that women were more likely to perceive themselves being empowered than men. The results from the two Japanese samples did not find any significant differences, which is of interest because Japan is traditionally seen a very patriarchal society. Applications of the RETS can be paired with qualitative research to better understand empowerment success stories and then to apply these best practices to other destinations where empowerment discrepancies are present. Future applications of the RETS are suggested to help initiate “gender mainstreaming” within the sustainable tourism literature.