Optimal Control of Pollution Accumulation with Long-Run Average Welfare

This paper considers the problem of pollution accumulation in order to maximize the long-run average welfare functional in environmental economics. We approach the problem by solving the associated Hamilton-Jacobi-Bellman equation in the classical sense, via the viscosity solution method. The optimal policy is shown to exist in a feedback from, and the maximum value is also obtained independently of the initial level of pollution. An equilibrium of the optimal stock of pollution is discussed.     

Cordon Pricing and Land‐Use Regulation

This study explores the simultaneous imposition of cordon pricing and land‐use regulations in a continuous and closed monocentric city with homogeneous households. Results reveal the optimal level of a single cordon toll and its location and the optimal floor area ratio (FAR) regulation, clarifying what distortions remain in the existence of cordon pricing and FAR regulation. Among other results, this paper shows that, with an optimal cordon toll, FAR regulation should alternate between a minimum and a maximum regulation, both inside and outside the cordon line.     

Using managers' expectations for ex-ante policy evaluation: Evidence from the COVID-19 crisis

Evaluation of the impacts of government policies during an economic crisis is often delayed until the outcomes are realized. Policies can be better guided if they can be evaluated amid a crisis, before the realization of outcomes. This study examines whether survey data on the expectations of small business managers can help evaluate two high-stake subsidies for firms amid the COVID-19 crisis in Japan, namely, Subsidy Program for Sustaining Businesses (SPSB) and Employment Adjustment Subsidy (EAS). We evaluate the accuracy of managers' expectations, estimate the impact of subsidies on the expected firm survival, and compare it with the estimated impact on realized survival. We find that the managers' expectations on their future sales, survival rate, and the possibility of receiving these subsidies predict the realized outcomes, although they were highly pessimistic about their survival rates. We find that the estimated impacts of the SPSB on the expected survival rates have the same sign as the estimated impact on the realized survival rates, but the size is more than twice because of the pessimism on survival. The estimated impacts of the EAS are both insignificant. Therefore, although its impact may be overestimated, managers' expectations are useful for selecting an effective policy.     

Regression analysis of indicating multiple incremental cost-effectiveness ratios for non-small cell lung cancer treatment

Objectives:

The value of a health technology can be measured in terms of cost and benefit on two-dimensional co-ordinates. This study is to quantitatively analyze the correlation and to conduct a regression on the X-Y plane constituted by cost and QALYs (quality-adjusted life years) associated with the first line treatment, the maintenance treatment, and the second line treatment for non-small cell lung cancer (NSCLC).

Methods:

The cost-effectiveness data of the cost and QALYs were extracted, with respect to the three categories of the NSCLC treatment, from the CEA Registry at Tufts Medical Center, regarding the literature published from 2000–2011. As a result, 44 QALY-cost ratios were identified.

Results:

Based on those extracted data, the correlation and regression analyses were performed by mathematical model using log and square-root functions. The plotted ratios stratified by the three stages for the NSCLC treatment were visually grouped into three clusters. There were statistically significant differences among the correlation coefficients of the cluster. In regression, the log model was found to be better fitted than the square-root model; formulating QALY?=??1.12?+?0.16 log(Cost), ?1.99?+?0.28 log(Cost), and ?0.69?+?0.10 log(Cost) for the first line, the maintenance, and the second line treatment, respectively. Monetary units were standardized to 2008 US dollars.

Conclusion:

A good methodological potential was confirmed so as to assess the Incremental Cost Effectiveness Ratio (ICER) variations, considering stratification by multiple factors such as disease and treatment categories. This study has certain limitations, such as the small number of included articles and the stratification, not reflecting a factor of new genetic findings.     

IS MINIMUM WAGE AN EFFECTIVE ANTI‐POVERTY POLICY IN JAPAN?

This paper considers whether the minimum wage is a well‐targeted antipoverty policy by examining the backgrounds of minimum‐wage workers. Whether raising the minimum wage reduces employment for unskilled workers is also investigated. An examination of micro data from a large‐scale government household survey, the Employment Structure Survey (Shugyo Kozo Kihon Chosa), reveals that approximately half of minimum‐wage workers belong to households with annual incomes of more than 5 million yen as a non‐head of household. A regression analysis indicates that an increase in the minimum wage moderately reduces the employment of male teenagers and middle‐aged married women, while it encourages the employment of high‐school age youth.     

Isolation in Cloud Computing and Privacy-Enhancing Technologies

Cloud Computing lifts the borders between the access control domain of individuals’ and companies’ IT systems by processing their data within the application frameworks and virtualized runtime environments of Cloud service providers. A deployment of traditional security policies for enforcing confidentiality of Cloud users’ data would lead to a conflict with the availability of the Cloud’s software services: confidentiality of data would be assured but Cloud services would not be available for every user of a Cloud. This state-of-the-art contribution shows the analogy of the confidentiality of external data processing by Cloud services with mechanisms known and applied in privacy. Sustainability in Cloud is a matter of privacy, which in Cloud is called “isolation”.     

A statistical comparison of the short-term interest rate models for Japan,U.S., and Germany

We propose a simple and practical model selection method for continuous time models. We apply the method to several continuous time short-term interest rate models using discrete time series data of Japan, U.S. and Germany. All the models can be easily estimated from discrete observations, and their performances can be evaluated in a uniform statistical framework. The models that allow dependence of volatility on the level of interest rates tend to perform well empirically. The degree of volatility dependence on the interest rate levels seems to be different across the countries. For the German data, we observe that a model with nonlinear drift performs better than the best linear drift model.