Pricing Structure in Tokyo Metropolitan Land Markets and its Structural Changes: Pre-bubble,Bubble, and Post-bubble Periods

In this paper, we estimate hedonic price equations of Japanese commercial and residential land prices for a 25-year period and to investigate possible structural changes in these price equations. Our price equations are based on transaction prices, not appraised land values, of commercial land in Central Business Districts of Tokyo (Chiyoda Ward, Chuo Ward, and Minato Ward), and residential land of its suburb (Setagaya Ward). We find that price structure differs substantially among locations, reflecting differences in supplier pricing and end-user preferences. We also find significant structural changes in price structure, identifying pre-bubble, bubble and post-bubble periods.

Destabilization effect of international trade in a perfect foresight dynamic general equilibrium model

In the present paper, we consider a two-country, two-good, two-factor general equilibrium model with CIES nonlinear preferences, asymmetric technologies across countries and decreasing returns to scale. It is shown that aggregate instability and endogenous fluctuations may occur due to international trade. In particular, we prove that the integration into a common market on which countries trade the produced good and the capital input may lead to period-two cycles even when the closed-economy equilibrium is saddle-point stable in both countries.     

Product innovation with mass-production: Insufficient or excessive?

Significant product innovation often entails standardization of product characteristics and mass-production. This paper examines the market outcome and social-welfare property of product innovation involving mass-production. It is shown that the share of mass-producers has tendency to be larger than the social optimum. The equilibrium share of mass-produced products is determined by the indifference condition of the marginal customer, while the optimal share is based on the indifference condition of the average customer. Since the marginal customer's benefit of using local products is lower than the average customer's, consumers move to mass-produced products more than desired. However, if there is positive externality among consumers in using mass-produced products, the market may have multiple equilibrium and the conclusion of excessive share of mass-produced products in market equilibrium may be reversed.     

Interlinkage in the endogenous real business cycles of international economies

Summary This study investigates interlinkage among the business cycles of countries from the viewpoint of endogenous real business cycles. For this purpose, we build a simple perfect foresight equilibrium model with two countries and characterize the global dynamics of a free-trade equilibrium as well as that of each country's autarky equilibrium by means of the fundamental structure of an economy.We are greatful to Murray Kemp, Mukul Majumdar, Takashi Negishi, Marcus Noland, Ian Novos, Jose Scheinkman and an anonymous referee for useful conversations and suggestions.     

The hopf bifurcation and the existence and stability of closed orbits in multisector models of optimal economic growth

It is shown that under very general circumstances, the standard optimal growth model with two or more capital goods can give rise to optimal trajectories that are limit cycles. An example with a nonjoint production Cobb-Douglass technology giving rise to closed cycles around a unique steady state is constructed. The stability of orbits is also studied.     

A note on the global stability in dynamical economic systems

A simple set of sufficient conditions is given for utility functions to satisfy the Q-matrix condition of Brock and Scheinkman. Utility functions must be sufficiently concave but not excessively concave compared with the discount rate.     

Ergodic chaos in optimal growth models with low discount rates

Summary We show that for every discount factor(0,1) one can find infinitely many strictly concave discrete-time optimal growth models in reduced form which have optimal policy functions exhibiting ergodic chaos. These reduced form models are interpreted in a two-sector optimal growth setting with utility functions depending on consumption as well as on capital.We thank Luigi Montrucchio for pointing out an error in a previous version of the paper.     

The Chinese Stock Market Does not React to the Japanese Market: Using Intraday Data to Analyse Return and Volatility Spillover Effects

In this paper, we use high‐frequency data to explore the effects of return and volatility spillover during periods in which trading hours in China and Japan overlap. Specifically, we utilize 5‐min returns to estimate fractionally integrated asymmetric power autoregressive conditional heteroskedasticity and fractionally integrated exponential generalized autoregressive conditional heteroskedasticity models, then use the models' standardized residuals to employ a cross‐correlation function approach that tests for the degree to which the Chinese and Japanese markets affect each other. Results indicate a unidirectional influence of the Chinese stock market on Japanese markets in terms of return. This result is likely attributable to restrictions on foreign investment in the Chinese market and the lack of diversified international portfolios among individual Chinese investors.     

Alternative Indicators for the Risk of Non‐response Bias: A Simulation Study

The growth of non‐response rates for social science surveys has led to increased concern about the risk of non‐response bias. Unfortunately, the non‐response rate is a poor indicator of when non‐response bias is likely to occur. We consider in this paper a set of alternative indicators. A large‐scale simulation study is used to explore how each of these indicators performs in a variety of circumstances. Although, as expected, none of the indicators fully depict the impact of non‐response in survey estimates, we discuss how they can be used when creating a plausible account of the risks for non‐response bias for a survey. We also describe an interesting characteristic of the fraction of missing information that may be helpful in diagnosing not‐missing‐at‐random mechanisms in certain situations.     

RAISING CAPITAL BY ISSUING TRANSFERABLE MEMBERSHIP IN A WORKER COOPERATIVE

It is generally recognized that worker cooperatives have a disadvantage in raising capital compared with conventional capitalist firms. In this paper, we explore a method for a worker cooperative to raise non‐redeemable equity by issuing transferable membership shares as financial securities.