The response of firms to eligibility thresholds: Evidence from the Japanese value-added tax

It is common to define benefit eligibility for small business policies by restrictions on the firm size. This paper documents the effects of the value-added tax (VAT) threshold in Japan, focusing on the incentives for a large firm to “masquerade” as many small firms by separately incorporating business segments. A comparison of the corporate size distributions before and after the VAT introduction of 1989 shows a clustering of corporations just below the threshold—a pattern that is attributable to the behavioral responses. To rule out the confounding influences of the changes in the company attributes over the years, we applied a semiparametric density decomposition technique developed by DiNardo, Fortin, and Lemieux (DiNardo J., Fortin N.M., Lemieux T., Labor market institutions and the distribution of wages, 1973–1992: a semiparametric approach. Econometrica 1996; 64; 1001–1044). This study suggests that the masquerading behavior by firms may be commonplace in other settings.     

Effect of Exchange Rates and Gasoline Prices on US Imports of Japanese Automobiles

We analyze the effects of gasoline prices and exchange rates on Japanese automobile imports to the United States between 1970 and 2004. We test the relationships before, during, and after the Voluntary Restraint Agreement placed on Japanese imports between 1981 and 1988. We also control for general demand for automobiles and domestically manufactured Japanese vehicles. As expected, we found that demand for Japanese imports is positively correlated with the price of gasoline. Before 1988 the demand for Japanese imports contributed to a strengthening of the yen. But after, a positive relationship between the yen-for-dollar exchange rate and imports has prevailed.     

Personal Authentication Using a Kinect Sensor

This article proposes a new approach to personal authentication by exploring the features of a person’s face and voice. Microsoft’s Kinect sensor is used for facial and voice recognition. Parts of the face including the eyes, nose, and mouth, etc., are analyzed as position vectors. For voice recognition, a Kinect microphone array is adopted to record personal voices. Mel-frequency cepstrum coefficients, logarithmic power, and related values involved in the analysis of personal voice are also estimated from the voices. Neural networks,support vector machines and principal components analysis are employed and compared for personal authentication. To achieve accurate results, 20 examinees were selected for face and voice data used for training the authentication models. The experimental results show that the best accuracy is achieved when the model is trained by a support vector machine using both facial and voice features.     

Information asymmetry in small and medium enterprise credit guarantee schemes: evidence from Japan

In this article, we investigate whether there is adverse selection and/or moral hazard in credit guarantee schemes for small and medium enterprises (SMEs) in Japan. As credit guarantee corporations cannot distinguish low risk from risky borrowers, credit guarantee schemes typically attract a larger proportion of risky borrowers, which results in inefficient resource allocation. Using bank-level data, we analyse whether the default rate is positively associated with the ratio of guaranteed loans to total loans, and find that the data are consistent with an adverse selection and/or moral hazard hypothesis. Further analysis shows that the relationship is stronger for 100% coverage than for 80% coverage, indicating that the ‘20% self-payment’ requirement somewhat mitigates the problem, but not enough to eliminate it altogether.     

城市建成环境对鸟类多样性的影响机制研究评述及展望

城市化带来的环境变化是生物多样性的主要威胁,但城市同样也是生物多样性保护的热点地区。因此,分析和预测城市环境变化对生物多样性的影响对于维护城市生态系统服务,提升人类福祉至关重要。目前,越来越多的研究对城市建成环境进行了详细的分类,分别量化了各个城市特征对生物多样性水平的影响。然而,对影响城市内生物多样性水平的因素仍缺乏多尺度、全球性的分析。借助Web of Science和CNKI,对来自全球37个城市的111篇文献进行了建成环境下鸟类多样性研究方法和结果的系统性分析,并在归纳关键性城市建成环境要素的基础上,提出了以生物多样性为导向的建成环境优化策略,指出了鸟类多样性保护和城市可持续发展的未来方向。     

Are all financial crises created equal? Wholesale funding and two financial crises

We use financial information on banks from Asia, Europe, North America and Oceania to examine the role of wholesale funding on the transmission of financial crises to bank lending, as well as to study the response of financial institutions in different regions during the crises. We consider the role of wholesale funding during the Global Financial Crisis (GFC) and Asian Financial Crisis (AFC). Our results suggest that during the GFC, wholesale funding dependence had a negative effect on loans growth across regions, but with substantial regional heterogeneity. The growth of loans from financial institutions in Asia and Europe was consistently sensitive to wholesale funding dependence. Although wholesale funding did not play a significant role in the transmission mechanism of the AFC, a subsample of financial institutions in Asia, who depended more heavily on wholesale funding, experienced a faster loan growth and may have been able to better withstand the crisis.     

A comparative study of the mode of domestic and transborder information flows including data

Information flow for point to point communications is carried by means of mail, telegram, telex. facsimile, telephone and data communications. The amount of information carried by these media was analyzed for Japanese and U.S. domestic communications, as well as for U.S.-Japan transpacific communications. The total domestic and international information flows are found to be closely related with the gross domestic product (GDP) and the gross international trade, respectively. The effects of technological innovation, service inauguration and regulatory events on the change of information flow are also found.     

The effect of mergers on employment and wages: Evidence from Japan

This study investigates the impact of mergers on employment and employees’ wages in Japan, based on 111 mergers between listed firms observed between 1990 and 2003. Typically, the number of employees decreases by 4.45% three years after a merger, even after changes in sales and other variables are controlled. Firms that experience related mergers, and rescue mergers are more likely to decrease the number of workers. At the same time, wages increase by 5.46% per employee. These results suggest that the main motivation behind mergers is not to divest employees of their wealth.     

Measuring economic localization: Evidence from Japanese firm-level data

This paper examines location patterns of Japan’s manufacturing industries using a unique firm-level dataset on the geographic location of firms. Following the point-pattern approach proposed by Duranton and Overman (2005), we find the following. First, about half of Japan’s manufacturing industries can be classified as localized and the number of localized industries is largest for a distance level of 40 km or less. Second, several industries in the textile mill products sector are among the most localized, which is similar to findings for the UK, suggesting that there exist common factors across countries determining the concentration of industrial activities. Third, the distribution of distances between entrant (exiting) firms and remaining firms is, in most industries, not significantly different from a random distribution. These results suggest that most industries in Japan neither become more localized nor more dispersed over time and are in line with similar findings by Duranton and Overman (2008) for the UK. Fourth, a comparison with the service sector indicates that the share of localized industries is higher in manufacturing than in services, although the extent of localization among the most localized manufacturing industries is smaller than that among the most localized service industries, including financial service industries.     

Environmental Goods and Measures for Their Promotion: An Analysis Using a Fair Wage Model

In this paper, we model a two‐sector small open economy with emissions and unemployment associated with the fair wage effort hypothesis, and investigate the environmental and employment impact of an emission tax, a subsidy for purchasing environmental goods in the downstream polluting industry, and a subsidy to the upstream eco‐industry. We then show that if the eco‐industry is skilled labor intensive relative to the polluting final goods industry, while a subsidy for purchasing environmental goods decreases the unemployment rate of unskilled labor, it may increase total emissions. In contrast, the emission tax and the subsidy to eco‐industry firms worsen the unemployment rate, though both policies decrease total emissions. Hence, if the emission tax is set equal to the marginal environmental damage, and either a downstream or upstream subsidy is used to mitigate unskilled unemployment, the optimal subsidy to purchase the goods is positive whereas the optimal subsidy to the eco‐industry is negative, i.e., a tax on the eco‐industry.