Modeling Methods for Discrete Choice Analysis

This paper introduces new forms, sampling and estimation approaches fordiscrete choice models. The new models include behavioral specifications oflatent class choice models, multinomial probit, hybrid logit, andnon-parametric methods. Recent contributions also include new specializedchoice based sample designs that permit greater efficiency in datacollection. Finally, the paper describes recent developments in the use ofsimulation methods for model estimation. These developments are designed toallow the applications of discrete choice models to a wider variety ofdiscrete choice problems.     

On Professor Takashi Negishi's contributions to economic theory

Professor Takashi Negishi has made fundamental contributions to economic theory on an extremely broad range of topics. As the editors of this special issue, we feel extremely fortunate that each of us has worked on topics with respect to which Professor Negishi's influences have been particularly large. In this introductory article, each of us will discuss Professor Negishi's influence on the topic we are most familiar with. For the entire spectrum of his research, readers are referred to the list of Professor Negishi's publications presented at the end of this article.     

Effects of international sharing of pollution abatement burdens on income inequality among countries

Improvements in environmental quality will boost output production and hence economic growth. However, although environmental abatement equally benefits all economies in the world, it is shown that, if the private productive resources are not yet accumulated sufficiently in low income economies, income inequality among economies can be widened in the short term not only under equal burden sharing of pollution abatement but even under income-proportional burden sharing. When the marginal productivity is diminishing, the negative effect of the burden is large relative to the positive effect of the improved environment in economies in which resources are not accumulated sufficiently.     

Conjectural Variations and Voluntary Public Good Provision in a Repeated Game Setting

The purpose of this paper is to show how conjectural variations can be derived as a reduced form in an infinitely repeated game of private provision of public goods. We obtain explicit closed forms of conjectural variations associated with maximal sustainable equilibria in which the sum of the utilities of all of a community's members is maximized for both quadratic and Cobb–Douglas preferences, provided that the resulting sequence of contributions can be sustained as a Nash (or subgame perfect) equilibrium in the underlying repeated game. We also show that positive conjectural variations will emerge as long as people place positive weight on the future, and that those conjectures are positively related to the discount factor.     

Trade and Gains from Trade Between Profit-maximizing and Labour-managed Countries with Imperfect Competition

This paper offers a theoretical analysis of trade and the gains from trade in general equilibrium under imperfect competition by assuming that all firms in one country are of the labour-managed type (maximizing the income of labour) while those in the other country are of the profit-maximizing type. Our main conclusion is that if the labour-managed country is larger than or equal to the profit-maximizing country, the profit-maximizing country exports the imperfectly competitive commodity and gains from trade while the labour-managed country exports the perfectly competitive commodity and may lose from trade.     

Trade, Vertical Production Chain, and Competition Policy

The authors build a trade model that renders tractable the process in which imperfect competition in a country's downstream sector affects the rest of the world through international trade. For this purpose, internationally traded goods are viewed as middle products in the vertical chain of production, in which middle products are produced upstream and transformed into final consumption goods downstream. Suppression of competition in a country's downstream sector may serve as a beggar-thy-neighbor policy, increasing that country's own utility while reducing that of its trading partner countries.     

The labor market in Tokugawa Japan: Wage differentials and the real wage level, 1727–1830

Tokugawa economic history provides quite an interesting example of the workings of the labor market: In the Tokugawa period a contraction in occupational wage differentials occurred concurrently with a rise in real wages. This paper deals with these aspects of wage change and a general set of problems which has arisen about them. The first section sets out these problems; the second deals with the evidence on wage differentials and real wages in Kinai from 1727 to 1830. The third provides a theoretical framework to explain the findings; finally the last section examines the implications of the findings.     

Optimal chaos,nonlinearity and feasibility conditions

Summary This study constructs a class of dynamic models in which optimal paths are generated by nonlinear transition functions similar to a tent map. We provide a sufficient condition under which such a transition function is a chaotic map. This characterization provides a way to construct complex nonlinear dynamics in a broad range of dynamic economic models.We would like to thank Michele Boldrin, William Brock, Richard Day, Mukul Majumdar, Lionel McKenzie, Tapan Mitra, Luigi Montrucchio, Jose Scheinkman, Rangarajan Sundaram and the referees for comments and discussions.