Customer behavior analysis using motion pictures： Research on attractive flier design method

In this report, the authors would like to propose CMP-FDM （Customer Motion Pictures-Flier Design Method） to increase the willingness of consumers to visit the automobile dealership. CMP-FDM is a method of creating attractive fliers while using customer behavior analysis with videos. According to the analysis of how customers see fliers, the authors classify their behavior into three types and create attractive designs so that each guarantees each customer＇s satisfaction. Finally, the authors integrate the three types of fliers into one attractive to all customers by organizing the design features （design elements）, and then validate the method.     

Properties of Multinomial Lattices with Cumulants for Option Pricing and Hedging

In this paper, we analyze properties of multinomial lattices that model general stochastic dynamics of the underlying stock by taking into account any given cumulants (or moments). First, we provide a parameterization of multinomial lattices, and demonstrate that mean, variance, skewness, and kurtosis of the underlying may be matched using five branches. Then, we investigate the convergence of the multinomial lattice when the basic time period approaches zero, and prove that the limiting process of the multinomial lattice that matches annualized mean, variance, skewness and kurtosis is given by a compound Poisson process. Finally, we illustrate the effect of higher order moments in the underlying asset process on the price of derivative securities through numerical experiments using the multinomial lattice, and provide a comparison with jump-diffusion models.     

Marketing Channels and Retail Store Density in East Asia*

By measuring retail store density with regard to population, several studies have indicated that marketing channels in Asia are different from those in the USA and European countries. The present paper investigates to what extent a model similar to Flath and Nariu (1996) can empirically predict retail densities in Japan and China. The results suggest that the secular decline in the number of retail stores in Japan primarily results from the proliferation of car ownership and the expansion in the average size of a dwelling. We also demonstrate that the model accounts for the large variations in China's retail density.     

A System Comparison Approach to Distinguish Two Nonseparable and Nonnested Agricultural Household Models

This study distinguishes two nonseparable agricultural household models for a self-employed farm household. One assumes heterogeneity of farm and nonfarm labor and a competitive market for nonfarm labor. The other assumes homogeneity of the two types of labor and a restricted market for nonfarm labor. We compare demand systems that are derived from them, which have different dependent variables and different numbers of equations. We apply a Cox-type test to compare these complicated nonnested systems. Results show clearly that the former is better for Japanese rice-farming households. Comparison of price elasticities for those models verifies the importance of that test.     

A generalization of the Samuelson reciprocity relation,the Stolper-Samuelson theorem and the Rybczynski theorem under variable returns to scale

Assuming the Marshallian externalities, a generalization of the Samuelson reciprocity relation, the Stolper–Samuelson theorem and its dual Rybczynski theorem is demonstrated with n commodities and n inputs. Further it is shown that the ‘weak’ Stolper–Samuelson property does not coincide with the ‘strong’ property even when n=2. Then the effect of an own or other commodity price change on a commodity output is examined.     

A reconciliation between equity and efficiency in public goods economy

Journal of Economics -     

Health and Income Variation – A Panel Data Study on the Developed and Less Developed Economies

In this paper, human capital in the form of ‘health status’ is introduced into a neoclassical economic growth model as one of the main factors differentiating rich and poor countries. Various panel data models are used to examine how health and other growth factors affect average income in different countries. Our main empirical finding indicates that a one-year increase in life expectancy (the health status measure) raises GDP per capita by 0.5–0.9%. Based on this result, a baseline health status can be established to help poor countries achieve a targeted economic growth rate.     

Appraising Unhappiness in the Wake of the Great East Japan Earthquake

Considering the case of the Great East Japan Earthquake, we use the experienced‐utility approach to appraise the psychological distress from disaster‐related news. We take advantage of the serendipitous timing of our original nationwide weekly panel survey that became a fitting resource for the investigation of subjective well‐being in the immediate aftermath of the earthquake. Although all of Japanese society was affected, we found geographical heterogeneity between the affected areas (Sendai and Tokyo) and the unaffected areas in terms of mental costs. Our finding reminds us of the focusing effect (Kahneman et al., 2006 ; Dolan and Kahneman, 2008 ) as captured by Schkade and Kahneman ( 1998 ) in the maxim “Nothing in life is quite as important as you think it is while you are thinking about it”.     

A new computational tool for analysing dynamic hedging under transaction costs

This paper highlights a framework for analysing dynamic hedging strategies under transaction costs. First, self-financing portfolio dynamics under transaction costs are modelled as being portfolio affine. An algorithm for computing the moments of the hedging error on a lattice under portfolio affine dynamics is then presented. In a number of circumstances, this provides an efficient approach to analysing the performance of hedging strategies under transaction costs through moments. As an example, this approach is applied to the hedging of a European call option with a Black–Scholes delta hedge and Leland's adjustment for transaction costs. Results are presented that demonstrate the range of analysis possible within the presented framework.