Multimarket contact in continuous-time games

This paper investigates whether multimarket contact is effective in increasing the value of collusion. We show that for any discount rate, the set of equilibrium payoffs (average per market) expands through multimarket contact in continuous-time games.     

A Note on Interaction between Financial Markets

This paper investigates the interaction between thestock market and the stock option market. When thepredictions of the future stock price distributionsare different between markets,there is a chance that the option pricing method ofBlack and Scholes with its application to anarbitrage trading strategy may lead to substantialmarket turmoil. We will also investigatethe conditions of market stability.     

Asset illiquidity and market shutdowns in competitive equilibrium

This paper introduces asymmetric information in a competitive asset market into a dynamic general-equilibrium model with borrowing constraints. In the presence of borrowing constraints, asset sales become a crucial means for agents to finance opportunities to invest in new assets. In this environment, reduced asset sales due to asymmetric information lower the economic growth rate if agents invest in new assets. The volume of asset trade, however, becomes zero if and only if agents stop investing in new assets because of sufficiently low aggregate productivity. A low economic growth rate with a market shutdown is solely due to low aggregate productivity without any role of the market shutdown.     

Spatial inequality, globalization, and footloose capital

This paper shows the equivalence of spatial inequalities in industrial location and in income by revisiting the home market effect (HME) without any homogeneous good based on a reconstructed footloose capital model. In this simple framework, spatial inequalities in industrial location and in income are the HMEs in terms of firm share and wage, respectively. We show that the larger country has a more-than-proportionate share of firms and a higher wage. Furthermore, both the wage differential and the industrial location in the larger country evolve in an inverted U-pattern when transport costs decline. Finally, we analytically examine the effects of trade liberalization on the welfare and show that both countries may gain from globalization.     

Trade liberalization and welfare: Differentiated-good versus homogeneous-good markets

In this paper, we examine the effects of liberalization on industrial location and national welfare in a framework of new economic geography. Specifically, we explicitly incorporate arbitrary trade costs in both differentiated-good and homogeneous-good sectors into a two-country model, and clarify the effects of trade-barrier reduction in each sector. We show that their impacts on welfare levels in the two countries are different, and, if an industry is liberalized while the other is protected, a conflict between the countries might occur. Therefore, appropriate liberalization in both sectors is effective to alleviate such a conflict.     

Mobile capital and the home market effect

Abstract Most existing studies examine the home market effect (HME) in a framework with immobile labour as the only production factor and the assumption of a freely traded homogeneous good is known to be crucial for the HME to emerge. This study explores the HME in the presence of mobile capital by use of a footloose capital model allowing for positive transport costs of the homogeneous good. The mobile capital generates a channel to offset the trade imbalance of a country. As a result, the HME always appears for arbitrary transport costs in both sectors of differentiated and homogeneous goods.     

Fuzzy operational approach to analysis of Delphi forecasting

Delphi forecasting exploits the intuitive side of judgment, but there has been little attempt to analyse Delphi opinions quantitatively as a result of, among other things, severe methodological obstacles. Fuzzy theory provides a possible approach, and here is used to examine the relationship between experts' views on the degree of importance and year of the breakthrough they are forecasting. The underlying model assumes that the experts also estimate the possibility and range of advancing the year of breakthrough, given that important potential breakthroughs will have more resources diverted to them, and that this will affect the estimated dates (although the experts may not necessarily be aware that they are doing this). Graphical and analytical representations of this process are described which derive an estimate of the technological feasibility of the breakthrough as a function of time, from successive rounds of estimates of importance and year of breakthrough.     

A Simple Multi-Regional Input–Output Account for Waste Analysis

The present paper provides a simple multiregional input–output model for waste analysis with which to estimate intraregional and interregional effects of industrial wastes embodied in regional final consumptions. The empirical analyses using 1995 nine-regions input–output tables reveals the regional properties of the interregional linkage effects. The Kanto and Kinki regions remarkably control the industrial waste emissions and waste landfills within their own regions by importing waste-intensive intermediate goods and services from the other regions. The Chugoku and Shikoku regions greatly contributed to the production of the waste-intensive goods and services for the other regions, considering the waste emissions and waste landfills relative to the commodity production levels. We also find that the household consumption behaviour in other regions indirectly plays a more important role in waste emissions than the municipal waste disposal behaviour in the region in question at least in 1995.     

A Present-Value Model of Real Estate with Interneighborhood Dependency of Incomes

In this article, we build a simple present-value model to give the basis for an income-capitalization appraisal method considering interneighborhood dependency of net operating incomes. We also show the maximum-likelihood estimation method for the model in a cross-sectional situation and apply them to the residential land market in the Tokyo Metropolitan Area in the period 1986 to 1998. The results partly provide realistic estimates of the parameters and show the applicability of our model.