EVALUATION OF ASIAN AIRPORTS AS GATEWAYS: APPLICATION OF NETWORK EQUILIBRIUM MODEL

This research applies the bi‐level market model to the Asia‐based international air transport markets. The model is a two‐stage game in which airlines act as leaders and passengers act as followers. Airlines are assumed to control flight frequencies, and passengers are assumed to choose their optimal route. At the equilibrium point, we have subgame perfect equilibrium. We apply this model to 2003 Asia‐based international air transport markets and conduct some scenario studies. We find that discounting landing charges at Narita Airport increases the passenger flow but diminishes the gateway function for trans‐Pacific transport.     

Proportional income taxes and cores in a public goods economy

An equivalence relationship between cores and Pareto optimal allocations of a public goods economy where the public goods are to be provided through a proportional income tax is presented. For this purpose, the definition of the core is modified by allowing coalitions to tax their complements at any given rate. Also, a certain rule which specifies the rate is introduced.     

The futures premium and rice market efficiency in prewar Japan

This article studies the interrelation between spot and futures prices in the two major rice markets in prewar Japan from the perspective of market efficiency. Applying a non‐Bayesian time‐varying model approach to the fundamental equation for spot returns and the futures premium, we detect when efficiency reductions in the two major rice markets occurred. We also examine how government interventions affected the rice markets in Japan, which colonized Taiwan and Korea before the Second World War, and argue that the function of rice futures markets crucially depended on the differences in the structure of rice spot markets. Initially the increased volume of imported rice of a different variety from domestic rice disrupted the rice futures markets. Then, government intervention in the rice futures markets failed to improve the disruption. Changes in colonial rice cropping successfully mitigated the disruption, and colonial rice was promoted in order to unify the different varieties of inland and colonial rice.     

A note on the core of an income redistribution game

We consider a redistribution of income by an n-person game in which each member is levied a proportional income tax under some fixed rule. It is shown that the redistribution that will be achieved by a specific negative income tax is in the core of the game, which means that the redistribution can not be upset by any coalition of members acting strategically to evade the full taxation.     

The evolution of stock market efficiency in the US: a non-Bayesian time-varying model approach

A non-Bayesian time-varying model is developed by introducing the concept of the degree of market efficiency that varies over time. This model may be seen as a reflection of the idea that continuous technological progress alters the trading environment over time. With new methodologies and a new measure of the degree of market efficiency, we examine whether the US stock market evolves over time. In particular, a time-varying autoregressive (TV-AR) model is employed. Our main findings are: (i) the US stock market has evolved over time and the degree of market efficiency has cyclical fluctuations with a considerably long periodicity, from 30 to 40 years; and (ii) the US stock market has been efficient with the exception of four times in our sample period: during the long recession of 1873–1879; the recession of 1902–1904; the New Deal era; and the recession of 1957–1958 and soon after it. It is then shown that our results are partly consistent with the view of behavioural finance.     

International stock market efficiency: a non-Bayesian time-varying model approach

This article develops a non-Bayesian methodology to analyse the time-varying structure of international linkages and market efficiency in G7 countries. We consider a non-Bayesian time-varying vector autoregressive (TV-VAR) model, and apply it to estimate the joint degree of market efficiency in the sense of Fama (1970, 1991). Our empirical results provide a new perspective that the international linkages and market efficiency change over time and that their behaviours correspond well to historical events of the international financial system.     

Environmental Management in Japan: Applications of Input–Output Analysis to the Emission of Global Warming Gases

Environmental management requires, among other things, the incorporation of environmentally friendly technologies into production processes of environmentally friendly technologies into production processes at the producer level and the adoption of energy consumption patterns which save energy use at the household level. The systemwide approach involving both technology choice and consumer preference seems particularly essential for controlling the total emission of global warming gases. CO₂ and other global warming gases, as well as certain pollution causing gases, are produced when fossil fuels are burnt; and the consumption of fossil fuels occurs in both the production and consumption of goods and services. In this paper we discuss how input–output analysis can be used to estimate the entire production and consumption of global warming gases conditional on production technology and consumer preferences. We also present estimation results and their application to some environmental management issues in Japan. © 1997 John Wiley & Sons, Ltd.