Does Globalization Foster Economic Growth?

This article examines the effects of globalization, by especially focusing on the relaxation of local equity requirements (LERs) in developing countries. By constructing an endogenous growth model, where profit leakage to the South through LERs plays a key role, we obtain the following results. First, the relaxation of LERs in the South drives the relocation of firms from the North to the South, yielding a U‐shaped growth rate. Second, our numerical simulations suggest that a sufficient relaxation of LERs is beneficial for the South, although the shared profit of joint ventures is maximized through the use of LERs.     

Cost‐reducing R&D Investment,Labor Market and Trade

This paper constructs a two‐country model in which oligopolistic firms export goods and undertake cost‐reducing R&D investment. Each country imposes tariffs. A decrease in the tariff rates in both countries decreases cost‐reducing R&D investment.     

Systematic review and analysis of efficacy of recombinant factor IX products for prophylactic treatment of hemophilia B in comparison with rIX-FP

Abstract

Aims: Prophylaxis with standard-acting recombinant factor IX (rFIX) in hemophilia B patients requires frequent injections. Extended half-life (EHL) products allow for prolonged dosing intervals, and so reduce this treatment burden. Three technologies are employed to extend the half-life of FIX; glycopegylation, Fc-fusion, and albumin fusion. rIX-FP is a novel albumin fusion protein, which allows for a prolonged dosing interval of up to 14?days. A systematic review and indirect statistical comparison was performed to evaluate the efficacy of both EHL and standard-acting rFIX products compared with rIX-FP in Phase III trials for prophylaxis in adult hemophilia B patients.

Materials and methods: A systematic search was conducted in both EMBASE and PubMed to identify Phase III trials of prophylactic rFIX treatment in previously treated hemophilia B patients aged ≥12?years (FIX ≤2%). Annualized bleeding rate (ABR), spontaneous ABR (AsBR), and joint ABR (AjBR) data were extracted from each study. A z-test was performed using the mean of each parameter, and the mean difference in outcome between studies was calculated.

Results: Seven articles investigating six rFIX products were identified. Median ABR, AsBR, and AjBR ranged from 0–3.0, 0–1.0, and 0–1.1 (means = 0.8–4.26, 0.13–2.6, and 0.34–2.85), respectively. rIX-FP achieved the lowest median and mean values in all three parameters. Z-tests showed that mean ABR was significantly lower for rIX-FP 7-day prophylaxis compared with the majority of standard-acting and other EHL rFIX products.

Limitations: The low number of appropriate trials available for comparison limits the quantity of data available for comparison, and restricts the use of methods of adjustment for variance in study design or patient characteristics. However, these limitations are shared with similar analyses published in this field.

Conclusion: This indirect comparison of Phase III trials indicates that rIX-FP efficacy compares favorably vs other rFIX products for prophylaxis in hemophilia B.     

Existence of nontrivial equilibria in repeated games with imperfect private monitoring

We consider finitely repeated games with imperfect private monitoring, and provide several sufficient conditions for such a game to have an equilibrium whose outcome is different from repetition of Nash equilibria of the stage game. Surprisingly, the conditions are consistent with uniqueness of the stage game equilibrium. A class of repeated chicken is shown to satisfy the condition.     

Bifurcation and sunspots in the continuous time equilibrium model with capacity utilization

In the present paper, we construct a continuous time model of economic growth with positive externalities and with variable capacity utilization, and study the global equilibrium paths in this model. If there is a homoclinic orbit or a periodic solution in this model, equilibrium is globally indeterminate. We show that positive externalities can yield multiple steady states, a one-parameter family of homoclinic orbits, and a two-parameter family of periodic solutions. It is also shown that there exists a sunspot equilibrium in this model.     

Working and Training: A Nonlinear Dynamic Analysis of Human Capital Development

We tend to think of workers completing their education and then entering the workforce, where they will gradually develop their skills. In fact, however, a worker's career may be characterized not only by this gradual buildup of job-related skills but also by recurrent education, i.e. the phenomenon whereby a worker alternates between earning-intensive periods and training-intensive periods along his career path. In this study, we build a dynamic optimization model of earning/training decisions of a worker in which these patterns of his career path can be explained in an integrated manner.     

Effects of Price Regulations and Dark Pools on Financial Market Stability: An Investigation by Multiagent Simulations

We built an artificial market model and investigated the impact of large erroneous orders on financial market price formations. Comparing the case of consented large erroneous orders in the short term with that of continuous small erroneous orders in the long term, if amounts of orders are the same, we found that the orders induced almost the same price fall range. We also analysed effects of price variation limits for erroneous orders and found that price variation limits that employ a limitation term shorter than the time erroneous orders exist effectively prevent large price fluctuations. We also investigated effects of up-tick rules, adopting the trigger method that the Japan Financial Services Agency adopted in November 2013. We also investigated whether dark pools that never provide any order books stabilize markets or not using the model including one lit market, which provides all order books to investors, and one dark pool. We found that markets become more stable as the dark pool is increasingly used. We also found that using the dark pool more reduces the market impacts. However, if other investors’ usage rates of dark pools become too large, investors must use the dark pool more than other investors to avoid market impacts. When a tick size of a lit market is larger, dark pools are more useful to avoid market impacts. These results suggest that dark pools stabilize markets when the usage rate is under some threshold and negatively affect the market when the usage rate is over that threshold. Our simulation results suggest the threshold might be much larger than the usage rate in present real financial markets. This study is the first to discuss whether or not several concrete and actually adoptable regulations, including those that have never been employed (e.g. price variation limits with various parameters), could prevent large fluctuations of market prices, including those beyond our experience, using artificial market simulations, and to discuss quantitatively how spreading of dark pools beyond our experience could affect market price formations using the artificial market simulations. In short, this study is the first study to comprehensively discuss how regulations and financial systems beyond our experience could affect price formations using the artificial market simulations. Copyright © 2015 John Wiley & Sons, Ltd.     

Business cycle turning points based on DEA-discriminant analysis

Recently, the turning points of business cycle are decided with wide viewpoints after passing a couple of years from the points. This study tries to develop a model for judging the turning points in real-time by using a non-parametric approach, DEA-discriminant analysis, because we have sometimes faced sudden changes of economy and non-parametric approaches are useful for covering these movements. The constructed model succeeds to separate periods in Japanese economic expanding and recession terms, and the model would be helpful for the real-time judgments of the turning points of business cycle.