Applicability of a spatial computable general equilibrium model to assess the short-term economic impact of natural disasters

Computable general equilibrium (CGE) models have been widely used to assess the economic impact of natural disasters, but the models have not been fully validated by applying them to real disasters. This study focuses on validating a model for use in a short-run case in which the functional recovery of infrastructure and businesses occurred on a time scale of a few months. A special attempt is made to determine the parameter values of elasticity of substitutions, which play an important role in the effect on supply chains. In this study, a spatial CGE model, in which Japan is divided into nine regions, is constructed and applied to the case of the 2011 Great East Japan Earthquake and Tsunami. Through this application, the best estimates of the elasticity parameters generated relatively consistent estimates of production change compared with the observed change, both in severely affected regions and in other regions.     

Effects of an international income transfer on the global environmental quality

Effects of an international income transfer (from the North to the South) on the global environmental quality are examined. It is shown that a transfer of resources to a country, whose environmental quality is currently poor, may improve the global level of the environmental quality and benefit not only the recepient but also the donor country, even if the technology of cleanup of pollution is less efficient in the recipient country.     

[Geometric Lévy Process & MEMM] Pricing Model and Related Estimation Problems

In this article the [Geometric Lévy Process & MEMM] pricingmodel is proposed. This model is an option pricing model for theincomplete markets, and this model is based on the assumptions that theprice processes are geometric Lévy processes and that the pricesof the options are determined by the minimal relative entropy methods.This model has many good points. For example, the theoretical part ofthe model is contained in the framework of the theory of Lévyprocess (additive process). In fact the price process is also aLévy process (with changed Lévy measure) under the minimalrelative entropy martingale measure (MEMM), and so the calculation ofthe prices of options are reduced to the computation of functionals ofLévy process. In previous papers, we have investigated thesemodels in the case of jump type geometric Lévy processes. In thispaper we extend the previous results for more general type of geometricLévy processes. In order to apply this model to real optionpricing problems, we have to estimate the price process of theunderlying asset. This problem is reduced to the estimation problem ofthe characteristic triplet of Lévy processes. We investigate thisproblem in the latter half of the paper.     

A note on sufficient conditions for D-stability

In this note we shall present some sufficient conditions for D-stability on the basis of fundamental property of matrices with quasi-dominant diagonal blocks and, as an economic application, the ta?tonnement process with adaptive expectations [Arrow and Nerlove (1958)] is shown to be totally stable in the small.     

Regional economic models and continuous programming

This paper is concerned with an optimal investment allocation problem in a simple N-regional economic model. The problem is described as a class of optimal control problem, and formulated into a continuous linear programming problem. Both the primal and dual problems are considered. The procedure finds an optimal regional allocation of investment derived in terms of continuous programming.     

Both Sensitive Value Measure and its Applications

Asia-Pacific Financial Markets - In this paper we introduce the both sensitive value measure, which is an extended value measure of the risk sensitive value measure. We also introduce...