The governance structures of Japanese credit associations and their objective functions

Although Japanese credit associations are non-profit cooperative financial institutions, they assume the same financial functions as regional banks that are stock companies and they could compete with each other in a regional market. On the other hand, the governance structures of credit associations tend to exhibit weaker discipline than those of regional banks, and, for this reason, the financial performances of credit associations and regional banks might differ. In this article, we empirically investigated whether the objective functions of credit associations are different from those of regional banks considering their different governance structures. As a result, although significant differences of profitability of these two types of institutions were not detected, it was demonstrated that credit associations can capture a greater share of deposits than regional banks and the former are more conservative in risk taking than the latter. From these, there is a possibility that Japanese credit associations have different objective functions from regional banks.     

Global early warning system for displaced persons: interlinkages of environment, development, peace and human rights

The work described here is based on the FUGI global modeling concept. Its development is termed the Global Early Warning System for Displaced Persons (GEWS). The paper explains 1) the scope and objectives of the current research: 2) the methodology employed; 3) the main features of the model; and 4) some case studies having to do with the Philippines and Thailand.     

Facebook e-Portfolios for Career Education Focused on Japanese Employment Practice: A Case Study

The authors propose the effectiveness of Facebook functions in the promotion of career education. In recent years, career education in Japanese universities has differed slightly from that in other countries. Japanese students are trained to be competitive in the job-hunting process; they need to obtain the technical skills and knowledge necessary to pass a company entrance examination or a university oral interview. This practice is in stark contrast with the intrinsic meaning of vocational/career education, which is the process by which students acquire the abilities and independence required by a certain industry. This meaning is manifested in the purpose of the career education program of Hokkai-Gakuen University’s Faculty of Business Administration. The program’s purpose is to foster independence in its students rather than the acquisition of skills for the job-hunting process. The professional independence of every student is important to their career development after graduating from the university. On the other hand, it is known that e-portfolios generally encourage students to record and assess their activities. To promote the activities that students tackle in the program, we introduced an e-portfolio using Facebook. This study shows the characteristics and achievements of our e-portfolio.     

Rice productivity improvement in Cambodia through the application of technical recommendation in a farmer field school

Innovation in rice (Oryza sativa) productivity improvement is a major goal for rice research. However, many studies have tended to analyse the various factors that affect productivity separately, while farmers invest their scare resources in farm inputs that impact on multiple factors in the real farm. This study assessed the effectiveness of integrated pest management practised during farmer field school (FFS) training in Cambodia on the production efficiencies, yields and profitability of rice farming. In total, 270 FFSs on rice cultivated in the early wet, wet and dry seasons were randomly selected from three provinces in 3 years to analyse the production practices and productivity using six cost-related factors: seed, planting methods, field management, fertilizer use, pesticide application and harvesting. It was found that yields and profits were significantly higher with the technically recommended practices (TRs) than with traditional farmer practices (FPs). However, the reverse was true for production costs due to the overuse of seed and pesticides in FP, neither of which are correlated with yield increase for both FP and TR. Thus, the FFS approach is a knowledge-intensive field management tool that enables the rational use of farm inputs and that is expected to be highly effective for sustainable rice production improvement.     

Securitized markets,international capital flows,and global welfare

We study the effect of collateralized lending and securitization on international capital flows and welfare in a two-country general equilibrium model with idiosyncratic investment risk. The low-margin country (Home) endogenously supplies more safe assets and enables more risk sharing. Upon financial integration, capital flows from Foreign (high-margin country) to Home, leading to lower interest rates and a larger global supply of safe assets. Unlike in standard models with partial equity issuance, in our model, Home can lose from financial integration due to the endogenous reduction in risk sharing and aggregate shocks can generate large gross capital flows.     

Non-cooperative bargaining and the incomplete informational core

In an exchange economy with incomplete information, the signaling core is defined by the set of state-contingent allocations to which no coalitions object under informational leakage through proposals by informed agents. An objection underlying the signaling core is supported by a sequential equilibrium of an ultimatum bargaining game with an informed proposer. We prove that a stationary sequential equilibrium allocation in a Rubinstein-type sequential bargaining game with a restart rule belongs to the signaling core if the belief of players satisfies a self-selection property.     

Probability weighting and default risk: a possible explanation for distressed stock puzzles

This paper suggests incorporating investor probability weighting and the default risk of individual firms into a consumption-based asset pricing model. The extended model provides a unified explanation for several anomalous patterns observed in financial markets. The analysis addresses not only widely recognized asset pricing puzzles, such as the equity premium puzzle, but also less-studied anomalies on financially distressed stocks. The simulation, under which the model is calibrated according to U.S. historical data, shows that a combination of mild overweighting of probability on tail events and nonlinearity of equity values caused by default risk has the potential to resolve these patterns.     

Fat tails and spurious estimation of consumption‐based asset pricing models

The standard generalized method of moments (GMM) estimation of Euler equations in heterogeneous‐agent consumption‐based asset pricing models is inconsistent under fat tails because the GMM criterion is asymptotically random. To illustrate this, we generate asset returns and consumption data from an incomplete‐market dynamic general equilibrium model that is analytically solvable and exhibits power laws in consumption. Monte Carlo experiments suggest that the standard GMM estimation is inconsistent and susceptible to Type II errors (incorrect nonrejection of false models). Estimating an overidentified model by dividing agents into age cohorts appears to mitigate Type I and II errors.     

Applying Multiattribute-Based Group Decision Making Techniques in Complex Equipment Selection Tasks

A practicing industrial engineer, even an experienced decision maker, needs help in the sense that there is a necessity to use more logical or analytical decision support tools, especially when dealing with control and instrumentation projects which are often worth millions of dollars. In this article we propose an algorithm which can support the process of group decision making relating to industrial automation, especially involving the selection of control and instrumentation equipment. The aim of this article is to look only at the algorithm's application and how it is applied. To this end, two test cases are used as examples: (1) selecting a local area network for installation in an academic environment; and (2) selecting an integrated control system for a real-world pulp and paper mill. Obtained results show that the algorithm leads to a satisfactory solution. A software form of the algorithm is being programmed for use as a decision support tool.