Template-Type: ReDIF-Paper 1.0 Title: The living space, and local and regional economy:An examination of human mobility and human living Author-Name: John X. LAMBINO Author-Name-First: John Author-Name-Last:X. LAMBINO Abstract:The paper examines human mobility and human living, and how human beings relate with space. The paper’s objective is to reevaluate and advance the theory on locality, and local and regional economy. The paper initially gives a brief and broad overview on the existing theoretical frameworks to position its arguments. It then examines the formation of the Philippine territory and the Filipino people to look at the different forms in how human beings relate with space and the natural environment. After that, it uses an anthropo-historical perspective to look at the major lifestyles and human relationships with the natural environment from the dawn of human history to the present time. The objective is to ferret-out the spatial requirements and lifestyle stereotypes of human existence. It asserts that human existence has two forms: existence as individuals and existence as members of the human species. Furthermore, it asserts that human existence is sustained through a material exchange with the natural environment, and therefore spatiality is a necessity for human existence. From these perspectives, the paper argues that human living understood as the process of human existence has three modes: economic production (acquisition of the means to satisfy material and psychological needs), individual reproduction (recovery of the life force of the individual), and species reproduction (reproduction of the human species). The paper then pointed-out four major stereotypes of human lifestyle according to human mobility and spatiality for human existence. A. Nomadic lifestyle stereotype. B. Sedentary agricultural lifestyle stereotype. C. Lifestyle stereotype under simple reproduction. D. Lifestyle stereotype under expanded reproduction. Finally, the paper reconstitutes and redefines locality, and local and regional economy to give focus on human beings and human living. Locality is the entity that holistically unites the different processes of individual reproduction, species reproduction, and economic production at a defined space. Local and regional economy is the unfolding at a defined space of individual reproduction, species reproduction, economic production, and their interactions. Length: 29 Creation-Date: 2015-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-007.pdf File-Format: application/pdf Classification-JEL: B40, J61, R10, Z13 Keywords: Locality; Local Economy; Regional Economy; Living Space; Human Mobility Handle: RePEc:kue:epaper:e-15-007 Template-Type: ReDIF-Paper 1.0 Title: An empirical analysis on the relationship between emissions trading system and R&D investment Author-Name:Emiko Inoue Author-Name-First: Emiko Author-Name-Last:Inoue Abstract:Innovation is now expected to play an important role to overcome difficult issues of climate change more than ever. To examine how to induce innovation, the relationship between environmental policy and innovation has been focused on. Still few researches, however, have examined the impact of the EU emission trading scheme on innovation based on econometric analysis. This study scrutinises how corporate responses towards the EU ETS influence R&D investments of EU major corporations. Using firm-level panel data, which is constructed based on the data of corporate responses to the Carbon Disclosure Project, EU Industrial R&D Investment Scoreboard, and corporations’ CSR reports, I estimate two dynamic panel models using system GMM estimator. Endogeneity issue is addressed in these models. The results show that corporations which have a policy or a strategy to comply with the EU ETS or to react proactively before being regulated by the EU ETS are more likely to encourage R&D investment. The process of reacting towards the EU ETS may provide an opportunity for corporations to recognise the importance of R&D investment for their future strategy. Length: 21 Creation-Date: 2015-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-008.pdf File-Format: application/pdf Classification-JEL: Keywords: Climate change; EU ETS; R&D investment Handle: RePEc:kue:epaper:e-15-008 Template-Type: ReDIF-Paper 1.0 Title: Just ETS? Social Justice and Recent Reforms in EU and US Carbon Markets Author-Name:Sven Rudolph Author-Name-First: Sven Author-Name-Last:Rudolph Author-Name:Achim Lerch Author-Name-First: Achim Author-Name-Last:Lerch Abstract: Length: 18 Creation-Date: 2015-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-009.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-15-009 Template-Type: ReDIF-Paper 1.0 Title: Equilibrium Alpha in Asset Pricing in an Ambiguity-averse Economy Author-Name: Katsutoshi Wakai Author-Name-First:Katsutoshi Author-Name-Last:Wakai Abstract:We derive an equilibrium asset pricing relation analogous to the cap-ital asset pricing model (CAPM) for investors whose preferences follow the robust mean-variance preferences introduced by Maccheroni, Mari-nacci, and Ru￠ no (2013). Our model de?nes a precise relation between the value of alpha from the market regression and ambiguity: alpha is positive if the asset has greater exposure to market ambiguity than market risk, and vice versa. Length: 14 Creation-Date: 2015-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-010.pdf File-Format: application/pdf Classification-JEL: D81, G11, G12 Keywords: Ambiguity aversion, asset pricing, capital asset pricing model (CAPM), robust mean-variance preferences Handle: RePEc:kue:epaper:e-15-010 Template-Type: ReDIF-Paper 1.0 Title: Inter-sectoral Labor Immobility, Sectoral Co-movement, and News Shocks Author-Name: Munechika Katayama Author-Name-First:Munechika Author-Name-Last:Katayama Author-Name: Kwang Hwan Kim Author-Name-First:Kwang Hwan Author-Name-Last:Kim Abstract:The sectoral co-movement of output and hours worked is a prominent feature of business cycle data. However, most two-sector neoclassical models fail to generate this sectoral comovement. We construct and estimate a two-sector neoclassical DSGE model that generates the sectoral co-movement in response to both anticipated and unanticipated shocks. The key to our model’s success is a significant degree of inter-sectoral labor immobility, which we estimate using data on sectoral hours worked. Furthermore, we demonstrate that imperfect inter-sectoral labor mobility provides a better explanation for the sectoral co-movement than some alternative model emphasizing the role of labor-supply wealth e?ects. Length: 41 Creation-Date: 2015-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-011.pdf File-Format: application/pdf Classification-JEL: E32; E13 Keywords: Sectoral Co-movement; Labor Immobility; Non-separable Preferences; Unanticipated; Shocks; News Shocks. Handle: RePEc:kue:epaper:e-15-011 Template-Type: ReDIF-Paper 1.0 Title: Rules of Origin and Technology Spillovers from Foreign Direct Investment under International Duopoly Author-Name: Naoto Jinji Author-Name-First:Naoto Author-Name-Last:Jinji Author-Name: Yoshihiro Mizoguchi Author-Name-First:Yoshihiro Author-Name-Last:Mizoguchi Abstract:Using a simple three-country model of international duopoly, this study analyses the optimal choice of rules of origin (ROO) in a free trade area/agreement (FTA) when firms from outside the FTA must undertake foreign direct investment (FDI) in FTA countries and conduct part of their production process within the FTA to comply with the ROO. FDI causes spillovers of the superior production technology from a non-FTA firm to its competitor within the FTA, depending on how much of the production process is shifted to the FTA area. In this situation, we show that as the degree of multilateral trade liberalisation before formation of the FTA is higher, the optimal ROO tends to be less stringent. Length: 31 Creation-Date: 2015-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-012.pdf File-Format: application/pdf Classification-JEL: F12; F15 Keywords: rules of origin; free trade area/agreement; foreign direct investment; technology spillovers; oligopoly; Handle: RePEc:kue:epaper:e-15-012 Template-Type: ReDIF-Paper 1.0 Title: An Irreversible Change of Correlations in the US Equities Market and Difficulties in Using the Information Author-Name: Masahiko Egami Author-Name-First:Masahiko Author-Name-Last:Egami Author-Name: Yuki Shigeta Author-Name-First:Yuki Author-Name-Last:Shigeta Author-Name: Katsutoshi Wakai Author-Name-First:Katsutoshi Author-Name-Last:Wakai Abstract:This study statistically confirms the change of correlations across industries in the United States equities market in the financial crisis of 2007?2008. We use the regime-switching framework to identify the phenomenon and to study whether investors can use information about the structural change effectively in facing another crisis of that magnitude. To capture the irreversible structural change in the financial crisis and to separate it from the recurring boom?recession switches, we introduce two Markov chains and succeed in identifying these two different market movements. Our simulations of asset allocation demonstrate that the informed investor who knows the timing of the structural change can outperform uninformed investors from the viewpoint of mean-variance efficiency. However,our simulations also show that if the investor only assumes the possibility of the structural change and does not know its timing, then the result is not the same, which reveals the difficulty in detecting when the change actually occurs. Length: 43 Creation-Date: 2016-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-013.pdf File-Format: application/pdf Classification-JEL: C22, G10 Keywords: stock market returns; regime-switching models; structural change; correlation risk; EM algorithm; financial crisis. Handle: RePEc:kue:epaper:e-15-013 Template-Type: ReDIF-Paper 1.0 Title:Egalitarian Policies, Effective Demand, and Globalization: Considering Budget Constraint Author-Name: Taro Abe Author-Name-First:Taro Author-Name-Last:Abe Abstract:This paper examines the effectiveness of redistribution policies under budget constraint considering government spending for the productivity improvement as Bowles (2012) and effective demand based on Abe (2015). It shows that an asset-based redistribution policy is not always effective under effective demand and budget constraint. However, the increase of effective demand because of income distribution improves employment, labor productivity, and wage rates because of increased government spending for productivity improvement as the results of saving rate from profit income show. Length: 19 Creation-Date: 2016-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-014.pdf File-Format: application/pdf Classification-JEL: E12, F60, J80, J88 Keywords: Egalitarianism, Redistribution, Effective Demand, Globalization Handle: RePEc:kue:epaper:e-15-014 Template-Type: ReDIF-Paper 1.0 Title:Joint Provision of International Transport Infrastructure Author-Name:Se-il Mun Author-Name-First:Se-il Author-Name-Last:Mun Abstract:This paper considers the following scheme for the joint provision of an international transport infrastructure: two countries jointly establish an operator for the infrastructure who is then responsible for collecting the user charges. The costs of the infrastructure investment are covered by nancial contributions from the two countries, and the revenue from the user charges is distributed according to the share of contribution. The governments of the two countries choose the contribution that maximizes their national welfare. Assuming that the infrastructure use is non-rival, we show that nancing the infrastructure with revenue from user charges is better than nancing with tax revenue. We extend the analysis by incorporating congestion in infrastructure use. It is shown that independent decisions on contributions by two governments attain the rst-best optimum when the operator sets the user charge such that the toll revenue just covers the cost of the investment. We further examine the conditions under which joint provision is realized at Nash equilibrium. Length: 21 Creation-Date: 2016-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-15-015.pdf File-Format: application/pdf Classification-JEL:H54, L91, R41, R48 Keywords:international transport infrastructure, joint provision, congestion, self- nancing Handle: RePEc:kue:epaper:e-15-015 Template-Type: ReDIF-Paper 1.0 Title:An Analysis of Simultaneous Company Defaults Using a Shot Noise Process Author-Name:Masahiko Egami Author-Name-First:Masahiko Author-Name-Last: Egami Author-Name:Rusudan Kevkhishvili Author-Name-First:Rusudan Author-Name-Last:Kevkhishvili Abstract: During subprime mortgage crisis, it became apparent that incumbent models had underestimated company default correlations. Complex models that attempt to incorporate default dependency are difficult to implement in practice. On the contrary, practical models, such as One-Factor Gaussian Copula model, greatly underestimated simultaneous default probabilities. In this article, we develop a model for a company asset process and based on this model, we calculate simultaneous default probabilities using option-theoretic approach. Our model focuses on one industry and includes a shot noise process in the asset model directly. The risk factor driving the shot noise process is common to all companies in the industry but the shot noise parameters are assumed to be company-specific; therefore, every company responds to this common risk factor differently. Apart from the shot noise process, the asset model includes company specific Brownian motion. Compared to commonly used geometric Brownian motion asset model in option-theoretic approach, our model predicted higher simultaneous default probabilities for Citigroup Inc. in 2008, and for all company combinations for the years of 2009 and 2010. Our model is easy to implement and can be extended to analyze any finite number of companies without greatly increasing computational difficulty. Length: 46 Creation-Date: 2016-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-001.pdf File-Format: application/pdf Classification-JEL:G01, G21, G32 Keywords:shot noise; option-theoretic approach; asset process; simultaneous default probabilities Handle: RePEc:kue:epaper:e-16-001 Template-Type: ReDIF-Paper 1.0 Title:Acting Local!An Evaluation of the First Compliance Period of Tokyo’s Carbon Market Author-Name:Sven Rudolph Author-Name-First:Sven Author-Name-Last:Rudolph Author-Name:Toru Morotomi Author-Name-First:Toru Author-Name-Last:Morotomi Abstract: While the Paris COP21 Agreement blazes the trail for global climate policy, bottom-up market-based initiatives like the Tokyo Metropolitan Government Emissions Trading Scheme (TMG ETS) are still valuable supplements. The program has just finished its first compliance period: It’s high time for an interim evaluation. Length: 7 Creation-Date: 2016-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-002.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-16-002 Template-Type: ReDIF-Paper 1.0 Title:Sources and Consequences of Productivity Growth Dynamics: Is Japan Suffering from Baumol's Diseases? Author-Name:Hiroshi Nishi Author-Name-First:Hiroshi Author-Name-Last:Nishi Abstract:This study examines the sources and consequences of labour productivity growth dynamics in Japan (1970-2011) to investigate the extent to which Japanese economic performance has been affected by Baumol's growth and cost diseases. We find that although it is not as apparent in actual aggregate labour productivity dynamics, Baumol's growth disease lies behind the Japanese economy. In regard to Baumol's cost disease, the Japanese economy has undergone a change from productivity growth rate differential inflation to productivity growth rate differential deflation since the end of the 1990s. In other words, Baumol's cost disease appears atypically as deflation in the recent performance of the Japanese economy. Length: 48 Creation-Date: 2016-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-003.pdf File-Format: application/pdf Classification-JEL:L11, L16, O41, O47 Keywords:Baumol diseases;Productivity growth rate differential;Japanese economy Handle: RePEc:kue:epaper:e-16-003 Template-Type: ReDIF-Paper 1.0 Title:Optimality of Naive Investment Strategies in Dynamic MeanVariance Optimization Problems with Multiple Priors Author-Name:Yuki Shigeta Author-Name-First:Yuki Author-Name-Last:Shigeta Abstract:We study dynamic mean-variance optimization problems with multiple priors. We introduce two types of multiple priors, the priors for expected returns and the priors for covariances. Our framework suggests that the global minimumvariance portfolio is optimal when the investor strongly doubts the correctness of the estimated expected returns, and the equally weighted portfolio is optimal when the investor strongly doubts the correctness of the estimated covariances. From the back tests, we find that for some data sets, the strategy that invests in the global minimum-variance portfolio or the equally weighted portfolio considering the market condition is more efficient than the other mean-variance efficient portfolios. Length: 52 Creation-Date: 2016-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-004.pdf File-Format: application/pdf Classification-JEL:G11 Keywords:Robust mean-variance optimization; dynamic portfolio selections; naive diversification; global minimum-variance portfolio; mean-variance efficiency. Handle: RePEc:kue:epaper:e-16-004 Template-Type: ReDIF-Paper 1.0 Title:Optimal Switching under Ambiguity and Its Applications in Finance Author-Name: Yuki Shigeta Author-Name-First:Yuki Author-Name-Last:Shigeta Abstract:In this paper, we study optimal switching problems under ambiguity. To characterize the optimal switching under ambiguity in the finite horizon, we use multidimensional reflected backward stochastic differential equations (multidimensional RBSDEs) and show that a value function of the optimal switching under ambiguity coincides with a solutions to multidimensional RBSDEs with allowing negative switching costs. Furthermore, we naturally extend the finite horizon problem to the infinite horizon problem. In some applications, we show that ambiguity affects an optimal switching strategy with the different way to a usual switching problem without ambiguity. Length: 60 Creation-Date: 2016-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-005.pdf File-Format: application/pdf Classification-JEL: Keywords:Optimal Switching, Ambiguity Aversion, Reflected Backward Stochastic Differential Equation, Viscosity Solution. Handle: RePEc:kue:epaper:e-16-005 Template-Type: ReDIF-Paper 1.0 Title:Repeated Games with Recursive Utility:Cournot Duopoly under Gain/Loss Asymmetry Author-Name:Tadashi Sekiguchi Author-Name-First:Tadashi Author-Name-Last:Sekiguchi Author-Name:Katsutoshi Wakai Author-Name-First:Katsutoshi Author-Name-Last:Wakai Abstract:We study the repeated Cournot duopoly with recursive utility where the players discount gains more than losses. First, as in the standard model of discounted utility, we confirm that the optimal punishment equilibrium has a stick-and-carrot structure. Next, we explore its exact form in relation to the role of the asymmetry in discounting. We find that the discount factor used to evaluate losses controls the deterrence of a given punishment, while the discount factor used to evaluate gains influences the enforceability of the penalty. An increase in one of the two discount factors increases the most collusive equilibrium profit unless full collusion is already sustainable. However, the key to collusion is the loss discount factor: regardless of the level of the gain discount factor, full cooperation can be achieved if the loss discount factor is sufficiently high. Length:46 Creation-Date: 2016-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-006.pdf File-Format: application/pdf Classification-JEL:C73, D20, D90, L13 Keywords:Cournot duopoly, gain/loss asymmetry, optimal penal code, repeated game, recursive utility, utility smoothing Handle: RePEc:kue:epaper:e-16-006 Template-Type: ReDIF-Paper 1.0 Title:An empirical contribution to Minsky’s financial fragility:Evidence from non-financial sectors in Japan Author-Name:Hiroshi Nishi Author-Name-First:Hiroshi Author-Name-Last:Nishi Abstract:This study presents an empirical analysis to detect Minsky’s financial fragility and its determinants in the non- financial sectors in Japan, with particular attention paid to differences between sectors and sizes. While Minsky developed theoretical analyses of financial fragility for use in economic growth models, its empirical application is limited. Based on the financial fragility indices derived from a cash flow accounting framework and Minsky’s margins of safety, I detect the overall configuration and evolution of financial fragility (hedge, speculative, and Ponzi) in Japan. Then, the factors that determine the probability of being Ponzi finance are detected by using panel logistic regression. In doing so, this study reveals that although speculative finance is dominant in many sectors, the evolution of financial fragility is diversified and its determinants differ according to sector and size in Japan. Creation-Date: 2016-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-007.pdf File-Format: application/pdf Classification-JEL:E12, C25, N15 Keywords:Minsky, Financial fragility, Margin of safety, Japanese economy Handle: RePEc:kue:epaper:e-16-007 Template-Type: ReDIF-Paper 1.0 Title:Increased Shareholder Power, Income Distribution, and Employment in a Neo-Kaleckian Model with Conflict Inflation Author-Name:Hiroaki Sasaki Author-Name-First:Hiroaki Author-Name-Last: Sasaki Abstract: By using a Kaleckian model with firms’ debt accumulation, we investigate how in- creased shareholder power defined by a decrease in firms’ retention ratio and a mone- tary policy defined by interest controlled by a central bank a?ect macroeconomic vari- ables. The long-run equilibrium can be stable even if the short-run equilibrium exhibits debt-burdened growth. In addition, the long-run equilibrium can be unstable even if the short run equilibrium exhibits debt-led growth. Increased shareholder power can increase both rentiers and workers’ income shares. A monetary easing policy has an expansionary e?ect on the economy. However, it decreases both workers and rentiers’ income shares and thus has a negative e?ect on income distribution. Creation-Date: 2016-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-008.pdf File-Format: application/pdf Classification-JEL:E12, E21, E22, E32, E44 Keywords:financialization; income distribution; employment; firms’ debt Handle: RePEc:kue:epaper:e-16-008 Template-Type: ReDIF-Paper 1.0 Title:Developing the North American Carbon Market:Prospects for Sustainable Linking Author-Name:Sven Rudolph Author-Name-First:Sven Author-Name-Last:Rudolph Author-Name:Achim Lerch Author-Name-First:Achim Author-Name-Last:Lerch Author-Name:Takeshi Kawakatsu Author-Name-First:Takeshi Author-Name-Last:Kawakatsu Abstract: Creation-Date: 2016-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-009.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-16-009 Template-Type: ReDIF-Paper 1.0 Title:Behavioral Study of Personalized Automated Demand Response in Workplaces Author-Name:Takanori Ida Author-Name-First:Takanori Author-Name-Last:Ida Author-Name:Naoya Motegi Author-Name-First:Naoya Author-Name-Last:Motegi Author-Name:Yoshiaki Ushifusa Author-Name-First:Yoshiaki Author-Name-Last:Ushifusa Abstract: This study conducts a quasi-randomized controlled trial in a workplace with personalized lighting control and investigates the impact of automated demand responses on employees. To meet this objective, we set up four treatment groups: opt-in performance incentive, opt-in fixed incentive, opt-out performance incentive, and opt-out fixed incentive. Then, we estimate the average treatment effects (intent-to-treat and treatment-on-treated) of demand response. The results reveal a significant reduction in electricity consumption during peak hours for all four treatment groups. Creation-Date: 2016-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-010.pdf File-Format: application/pdf Classification-JEL:C23, C93, D03, Q41 Keywords:Field Experiment, Behavioral Economics, Default Effect Handle: RePEc:kue:epaper:e-16-010 Template-Type: ReDIF-Paper 1.0 Title:Foreign Direct Investment and Temporary Workers in Japan Author-Name:Ayumu Tanaka Author-Name-First:Ayumu Author-Name-Last:Tanaka Abstract:The rapid growth in the number of temporary workers in Japan during the 2000s gen- erated greater income inequality and greater job insecurity because temporary workers' wages are lower and their jobs are more tenuous than those of permanent workers. How- ever, little is established about the relation between globalization and domestic growth in the temporary workforce. This study examines that relationship. It investigates whether the initiation of foreign direct investment (FDI) into Asia increased temporary workers' share of total wages and employment. This study employs a rst-differenced difference-in- difference estimation with propensity score matching to examine how the initiation of FDI among Japanese manufacturers during 2003{2004 affected domestic employment. Firm- level data cover the period following the 2004 deregulation, which accelerated increases in the number of temporary workers by allowing manufacturers to employ such workers indirectly through employment agencies. Positive effects of vertical FDI are observed on the temporary worker ratio one year after starting FDI, but vanish in subsequent years. Therefore, this study concludes that the relationship between temporary workers and offshoring is complementary in the early stage of FDI and that no persistent effect of offshoring occurs that results in greater income inequality and greater job insecurity through an increase in the number of temporary workers. Creation-Date: 2016-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-011.pdf File-Format: application/pdf Classification-JEL:F16, F21, F23 Keywords:foreign direct investment; difference-in-difference estimation; propensity score matching; temporary workers Handle: RePEc:kue:epaper:e-16-011 Template-Type: ReDIF-Paper 1.0 Title:Fur eine foderale marktbasierte Klimapolitik:Lehren aus dem regionalen Emissionshandel in Nordamerika (Towards a market-based climate policy from the bottom up: Lessons from regional carbon markets in North America) Author-Name:Sven Rudolph Author-Name-First:Sven Author-Name-Last:Rudolph Author-Name:Takeshi Kawakatsu Author-Name-First:Takeshi Author-Name-Last:Kawakatsu Author-Name:Toru Morotomi Author-Name-First:Toru Author-Name-Last:Morotomi Abstract: Creation-Date: 2016-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/d-16-001.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:d-16-001 Template-Type: ReDIF-Paper 1.0 Title:Environmental disclosure and innovation activity: Evidence from EU corporations Author-Name:Emiko Inoue Author-Name-First:Emiko Author-Name-Last:Inoue Abstract:Innovation is expected to become an essential element in overcoming climate change issue. To examine the factors that might induce such innovation, this study focuses on environmental disclosure and scrutinises how it influences innovation activity. Utilising firm-level panel datasets from EU corporations (fiscal years 2000-08) that were constructed based on the Carbon Disclosure Project data and the EU Industrial R&D Investment Scoreboard, I estimate dynamic panel models using the system GMM estimator. The potential endogeneity issue is addressed in the models. Innovation activity is measured by R&D investment. The results show that corporations that implement a specific environmental disclosure action, namely, disclosing Scope 3 GHGemissions, are more likely to invest in R&D. This study sugg ests that supply chain management is crucial for corporations to enhance their innovation activity. In addition,this study reveals that a policy that stimulates corporate incentives to disclose Scope 3 GHG emissions may be a key to enhancing innovation activity. Since communication between corporations and other stakeholders, which may be enhanced by environmental disclosure , is a significant factor in encouraging corporate innovation activity, it is important to construct a system wherein environmental disclosure is evaluated objectively and corporations with strong environmental performance are adequately rewarded. Creation-Date: 2016-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-012.pdf File-Format: application/pdf Classification-JEL: Keywords:innovation;Environmental disc losure;Voluntary action;Endog eneity;Climate change Handle: RePEc:kue:epaper:e-16-012 Template-Type: ReDIF-Paper 1.0 Title:Financialization and Distribution in a Kaleckian Model with Firms’ Debt Accumulation Author-Name:Hiroaki Sasaki Author-Name-First:Hiroaki Author-Name-Last:Sasaki Abstract:This study investigates the degree to which increased shareholder power, which is important in the context of financialization, affects macroeconomic variables, exclusively income distribution, by building a Kaleckian model with firms’ debt accumulation. We find that the extent to which a decrease in firms’ retention ratio affects rentiers’ and workers’ income distribution differs according to whether the steady-state equilibrium exhibits debt-led or debt-burdened demand. Creation-Date: 2017-01 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-013.pdf File-Format: application/pdf Classification-JEL:E12, E21, E22, E32, E44 Keywords:financialization; income distribution; firm debt Handle: RePEc:kue:epaper:e-16-013 Template-Type: ReDIF-Paper 1.0 Title:Adaptation for mitigation Author-Name:Hiroaki Sakamoto Author-Name-First:Hiroaki Author-Name-Last:Sakamoto Author-Name:Masako Ikefuji Author-Name-First:Masako Author-Name-Last:Ikefuji Author-Name:Jan R. Magnus Author-Name-First:Jan R Author-Name-Last:Magnus Abstract: This paper develops a two-region (North and South) dynamic model in which the accumulation of human capital is negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region we show that the regions’ best responses can be strategic complements through a dynamic complementarity effect. The model is then used to analyze the impact of adaptation assistance from North to South. It is shown that North’s unilateral assistance to South (thus enhancing South’s adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at human capital protection. Pollution might increase in the short run, but in the long run the level of pollution will decline. The adaptation assistance we propose is Pareto improving and incentive compatible. Creation-Date: 2017-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-014.pdf File-Format: application/pdf Classification-JEL:D91, Q54, Q58 Keywords:financialization; Climate change, Mitigation, Adaptation, Human capital, Strategic complements Handle: RePEc:kue:epaper:e-16-014 Template-Type: ReDIF-Paper 1.0 Title:Uncertainty Shocks and the Relative Price of Investment Goods Author-Name:Munechika Katayama Author-Name-First:Munechika Author-Name-Last:Katayama Author-Name:Kwang Hwan Kim Author-Name-First:Kwang Author-Name-Last:Hwan Kim Abstract: This study empirically shows that higher uncertainty leads to not only a simultaneous drop in consumption and investment, but also a rise in the relative price of investment goods. This negative relationship between the relative price and quantity of investment suggests that heightened uncertainty depresses investment as an adverse supply shock to the investment sector. We demonstrate that a two-sector sticky price model with realistic asymmetric sectoral price rigidity can successfully account for our empirical findings. In particular, the underlying mechanism behind the negative relationship between the price and quantity of investment is limited intersectoral factor mobility. By contrast, the standard two-sector model featuring perfect factor mobility causes a negative co-movement between consumption and investment, contradicting the business cycle phenomenon. Creation-Date: 2017-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-015.pdf File-Format: application/pdf Classification-JEL:E32 Keywords:Uncertainty shocks; Sticky prices; Factor mobility; Relative price of investmentgoods. Handle: RePEc:kue:epaper:e-16-015 Template-Type: ReDIF-Paper 1.0 Title:Effect of Capitalizing Operating Leases on Credit Ratings:Evidence from Japan Author-Name:Masaki Kusano Author-Name-First:Masaki Author-Name-Last:Kusano Abstract: The purpose of this study is to examine the effects of constructively capitalizing operating leases on credit ratings in Japan. In particular, this study investigates whether and how a credit rating agency considers operating lease information when determining credit ratings. First, this study shows that constructively capitalized operating leases are associated with credit ratings. Second, this study finds that the associations between credit ratings and operating leases versus finance leases are not substantially different. However, when operating lease disclosures are less reliable, this study finds that operating leases are not associated with credit ratings and that the risk relevance of operating leases is substantially different from that of finance leases. This study reports that the reliability of accounting information has significant effects on the risk relevance of operating leases. These results indicate that a credit rating agency considers operating lease information in determining credit ratings to the extent that this information is reliable. This study contributes to the literature on the usefulness of operating lease disclosures and to the discussions on the global convergence of accounting standards. Creation-Date: 2017-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-016.pdf File-Format: application/pdf Classification-JEL:M41, M48 Keywords:Constructive Capitalization, Operating Leases, Risk Relevance, Reliability Handle: RePEc:kue:epaper:e-16-016 Template-Type: ReDIF-Paper 1.0 Title:There Did All the Markets Go!Or: Sustainable Carbon Markets and How to Get There Author-Name:Sven Rudolph Author-Name-First:Sven Author-Name-Last:Rudolph Author-Name:Elena Aydos Author-Name-First:Elena Author-Name-Last:Aydos Author-Name:Takeshi Kawakatsu Author-Name-First:Takeshi Author-Name-Last:Kawakatsu Author-Name:Achim Lerch Author-Name-First:Achim Author-Name-Last:Lerch Abstract: “Where Did All the Markets Go?”1 was a question prominent amongst environmental economists in the 1990s when they realized the lack of market-based approaches in environmental policy practice with despair. Public Choice, the economic analysis of politics, answered that question by claiming a “market tendency for the political process to resist market mechanisms for rationing scarce environmental resources.”2 And, while recently climate policy cap-andtrade programs have spread across the globe and even different governance levels, most carbon markets’ ambition have to be considered insufficient. But despite of all criticism of the “The Brave New World of Carbon Trading“3, carbon markets offer a number of advantages over alternative policy instruments, and in view of the tremendous challenges of the Paris Agreement and the necessity to decarbonize the global economy within this century, any policy option should be (re-)considered without prejudices. Yet, exactly because there is no time to waste, carbon markets can only be considered a valuable policy option if they are both sustainable and political feasible; a contradiction? Can sustainable carbon markets ever be made politically feasible? We think: yes! In order to support this, first, we will summarize environmental economics’arguments in favor of cap-and-trade and add a sustainability rationale for carbon markets, but from selected case studies we will also identify problems representative for many carbon markets in practice. We then identify the political barriers of sustainable carbon markets applying Public Choice reasoning. Last, we show how to overcome political obstacles and implement efficient, effective, and fair carbon markets by referring to best-practice examples and lessons from modern environmental governance literature. Creation-Date: 2017-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-001.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-17-001 Template-Type: ReDIF-Paper 1.0 Title:Egalitarian Policies and Effective Demand: Considering Balance of Payments Author-Name:Taro Abe Author-Name-First:Taro Author-Name-Last:Abe Abstract:This study examines the effectiveness of redistribution policies considering balance of payments. Unlike Bowles (2012) and Abe (2016, 2015), we assume that capital movement is sluggish to consider the short-run effects. Results indicate that conventional egalitarian policies such as increasing unemployment compensation and strengthening dismissal regulations can be effective, whereas an asset-based redistribution such as a decrease in the ratio of monitoring labor cannot be. These results contradict Bowles (2012). We need to reevaluate conventional egalitarian policies if the effects of effective demand and adjustment of capital continue in the long run. Creation-Date: 2017-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-002.pdf File-Format: application/pdf Classification-JEL:E12, F60, J80, J88 Keywords:Egalitarian Policies, Redistribution, Effective Demand, Globalization, Balance of Payments Handle: RePEc:kue:epaper:e-17-002 Template-Type: ReDIF-Paper 1.0 Title:The Internationalisation of Firms and Management Practices:A Survey of Firms in Viet Nam Author-Name:Isao Kamata Author-Name-First:Isao Author-Name-Last: Kamata Author-Name:Hitoshi Sato Author-Name-First:Hitoshi Author-Name-Last: Sato Author-Name:Kiyoyasu Tanaka Author-Name-First:Kiyoyasu Author-Name-Last:Tanaka Abstract:This study examines the role of management practices in the internationalisation of domestic firms through directly exporting and/or supplying to local affiliates of multinationals. An original survey of manufacturing firms in Viet Nam was conducted, investigating their management practices such as human resource management and internationalisation status. The survey results shed light on similarities and dissimilarities among firms in several dimensions of management practices. Findings reveal that internationalised firms tended to be more enthusiastic about the formal training of production workers, the modernisation of production and operation, and product and process innovation. Differences in skills and experience requirements for newly employed managers were less recognizable, but internationalised firms tended to have managers who studied overseas. Furthermore, the use of public support to employee training, teamwork in production, and unionisation of employees did not show a significant difference between internationalised and non-internationalised firms. Creation-Date: 2017-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-003.pdf File-Format: application/pdf Classification-JEL:F23, F61, M11, M50 Keywords:Management practices, Firm heterogeneity, Global value chains Handle: RePEc:kue:epaper:e-17-003 Template-Type: ReDIF-Paper 1.0 Title:Identifying the Effect of Mobile Operating Systems on the Mobile Services Market Author-Name:Toshifumi Kuroda Author-Name-First:Toshifumi Author-Name-Last: Kuroda Author-Name:Teppei Koguchi Author-Name-First:Teppei Author-Name-Last:Koguchi Author-Name:Takanori Ida Author-Name-First:Takanori Author-Name-Last:Ida Abstract:Modern economic theory predicts that tying can serve as a tool for leveraging market power. In line with this economic theory, competition authorities regulate the tying of Microsoft Windows with its Media Player or Internet browser in the EU and Japan. The authorities also take note of the market power of mobile handset operating systems (OSs) over competition in the app and services markets. However, no empirical evidence has thus far been presented on the success of government intervention in the Microsoft case. To assess the effectiveness of government intervention on mobile handset OSs, we identify the extent to which complementarity and consumer preferences affect the correlation between mobile handset OSs and mobile service app markets (mail, search, and map). We find significant positive complementarity between the mail, search, and map services, and mobile handset OSs. However, the elasticities of the mobile handset OS?mobile service correlations are rather small. We conclude that taking action to restrict mobile handset OSs is less effective than acting on mobile services market directly. Creation-Date: 2017-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-004.pdf File-Format: application/pdf Classification-JEL:L12, L43, L96 Keywords:Mobile phone, Handset, Internet service, Platform competition Handle: RePEc:kue:epaper:e-17-004 Template-Type: ReDIF-Paper 1.0 Title:Structural Change in Mass-Procurement Systems: China’s Iron and Steel Industry and the Global Iron Ore Market Author-Name:Akira Tanaka Author-Name-First:Akira Author-Name-Last:Tanaka Author-Name:Xiaochun Huang Author-Name-First:Xiaochun Author-Name-Last:Huang Abstract:This paper was originally presented at the 1stWorld Congress on Business History/ This study aims to describe historical trends in the “mass-procurement system” for iron ore, which for many years has been the largest non-fuel natural resource in terms of trade value. Wefocus on China because it reflects globaltrendsmost comprehensively. Throughmodern history, all large steel producers have established their own iron ore mass-procurement systems. We can classify thesesystemsinto three major modes:“captive mine”,“long-term contract (LTC)”,and “spot trading.” We found that in China, traditional state-owned steel companies such as Anshan Iron and Steel (Ansteel)adopted the captive-mine mode from the prewar period, like the Americans. On the other hand, the newly established leadingcompany Baoshan Iron and Steel (Baosteel) introduced the LTC mode, following the innovationof this mode by Japanese companies in the 1980s. Then, in the early twenty-first century, China’smass-procurement system for iron ore further diversifiedwhich establishedthe spot-trading mode as the third mass-procurement system. As a result, many steel companies tended to create a portfolio of sourcing modes. Creation-Date: 2017-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-005.pdf File-Format: application/pdf Classification-JEL: F50, N55, N65, N85, Q37 Keywords:Iron ore, China, Steel industry, Outsourcing Handle: RePEc:kue:epaper:e-17-005 Template-Type: ReDIF-Paper 1.0 Title:Industrial Organization of China’s Steel Industry and the Restructuring of the Asia-Pacific Iron Ore Market Author-Name:Xiaochun Huang Author-Name-First:Xiaochun Author-Name-Last:Huang Author-Name:Akira Tanaka Author-Name-First:Akira Author-Name-Last:Tanaka Abstract:The iron ore trading system underwent a transformation in 2010. Until then,long-term contracts dominated the trade and the FOB price was determinedthroughnegotiationsbetween supplierand buyer, with the agreed price applied the following year. This system was changed in 2010 to aquarterly index-linked pricingin which the CFR price was applied. Some studies have suggested that the intervention of the Chinese government was the reason for this change, but this study concludesthat it was thebargaining betweensuppliersand purchasers thatresulted in this transformation. Creation-Date: 2017-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-006.pdf File-Format: application/pdf Classification-JEL: Keywords:Long-term contract, spot trading, iron ore price index, the Big Three, China Iron and Steel Association(CISA), dispersed industrial organization, state intervention Handle: RePEc:kue:epaper:e-17-006 Template-Type: ReDIF-Paper 1.0 Title:Does Recognition versus Disclosure Affect Risk Relevance? Evidence from Finance Leases in Japan Author-Name:Masaki Kusano Author-Name-First:Masaki Author-Name-Last:Kusano Abstract:This study examines the risk relevance of recognized versus disclosed finance leases in Japan. In particular, this study investigates whether and why equity investors treat recognized finance lease obligations differently from disclosed finance lease obligations when assessing firms’ equity risk. This study shows that recognized finance leases are associated with equity risk but that disclosed finance leases are not. Moreover, the relations between recognized versus disclosed finance leases and equity risk are substantially different. However, for firms with higher levels of institutional ownership, the risk relevance of disclosed finance leases is similar to the risk relevance of recognized finance leases. These results suggest that institutional investors are more sophisticated at processing disclosed finance leases and treat ing disclosed and recognized finance leases similarly when assessing firms’ equity risk. This study provides the evidence that investors’ information processing has significant effects on the risk relevan ce of lease arrangements. This study contributes to the accounting literature on recognition versus disclosure and to the discussions on the global convergence of accounting standards. Creation-Date: 2017-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-007.pdf File-Format: application/pdf Classification-JEL: M41, M48 Keywords:Recognition versus Disclosure, Finance Leases, Equity Risk, Institutional Ownership Handle: RePEc:kue:epaper:e-17-007 Template-Type: ReDIF-Paper 1.0 Title:BEYOND THUNDERDOME?THE PROSPECTS OF FEDERAL GREENHOUSE GAS CAP-AND-TRADE IN AUSTRALIA Author-Name:ELENA AYDOS Author-Name-First:ELENA Author-Name-Last:AYDOS Author-Name:SVEN RUDOLPH Author-Name-First:SVEN Author-Name-Last:RUDOLPH Abstract: Length:21 Creation-Date: 2017-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-008.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-17-008 Template-Type: ReDIF-Paper 1.0 Title:THE JAPANESE CARBON TAX AND THE CHALLENGES TO LOW-CARBON POLICY COOPERATION IN EAST ASIA Author-Name:Takeshi Kawakatsu Author-Name-First:TakeshiI Author-Name-Last:Kawakatsu Author-Name:Soochoel Lee Author-Name-First:Soochoel Author-Name-Last:Lee Author-Name:Sven Rudolph Author-Name-First:Sven Author-Name-Last:Rudolph Abstract: Length:22 Creation-Date: 2017-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-009.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-17-009 Template-Type: ReDIF-Paper 1.0 Title:Knowledge transfer obstructs knowledge application: Qualitative study on open innovation Author-Name:Shohei Funatsu Author-Name-First:Shohei Author-Name-Last: Funatsu Author-Name:Yasuo Sugiyama Author-Name-First:Yasuo Author-Name-Last:Sugiyama Abstract:The purpose of this study is to examine the relationship between the processes through which a firm introduces or absorbs knowledge, and those through which it is applied within the firm by focusing on the in-bound type of “open innovation” process. Existing studies do not pay much attention to knowledge application and have hardly examined the relationship between knowledge transfer and application. If the transfer and application are qualitatively different, or in a mutually obstructing relationship, knowledge application would require specific management. We offer three key findings based on qualitative analysis of interviews and participant fieldwork data. As a result of the analysis, we assert the following conclusion. First, if the knowledge is more novel to the recipient, the motivation for open innovation increases, but the uncertainty in knowledge application increases at the same time. Second, if the uncertainty in knowledge application is high, or if the knowledge is novel or implicit to the recipient, the need for additional investment by firms such as establishing a new department or managing specialists will increase in order to maintain or accumulate the knowledge. Finally, if the recipient homogenizes to the source as scientific researchers, the homogenization promotes transfer but obstructs application. Length:34 Creation-Date: 2017-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-010.pdf File-Format: application/pdf Classification-JEL: Keywords:open innovation, knowledge transfer, absorptive capacity, knowledge management, grounded theory approach Handle: RePEc:kue:epaper:e-17-010 Template-Type: ReDIF-Paper 1.0 Title:A Factor Pricing Model under Ambiguity Author-Name:Katsutoshi Wakai Author-Name-First:Katsutoshi Author-Name-Last:Wakai abstract:We derive a factor pricing model undet the economy where the representative agent'’s preferences follow the smooth model of decision making under ambiguity as proposed by Klibanoff, Marinacci, and Mukerji (2005). A newly derived factor is called an ambiguity factor that captures a component of returns generated by ambigu- ity aversion. Creation-Date: 2018-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-012.pdf File-Format: application/pdf Classification-JEL:D81, G11, G12 Keywords:Ambiguity aversion, asset pricing, factor pricing Handle: RePEc:kue:epaper:e-17-012 Template-Type: ReDIF-Paper 1.0 Title:Why Do Exporters and Multinational Firms Pay Higher Wages?:Evidence from Japanese Linked Employer–Employee Data Author-Name:Ayumu Tanaka Author-Name-First:Ayumu Author-Name-Last:Tanaka Abstract:This study investigates the reasons why exporters, multinational enterprises (MNEs), and foreign-owned rms pay higher wages, using Japanese linked employer{employee data. It jointly examines the premiums for exporters, domestically owned MNEs, and foreign-owned rms and shows that observable plant and worker characteristics as well as region and industry xed e ects can account for almost all wage premiums of local exporters and domestically owned MNEs, whereas they cannot fully account for the wage premium for foreign rms. The results from quantile regressions reveal that the residual foreign wage premium is larger in the higher quantiles of the wage distribution. Length:22 Creation-Date: 2018-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-013.pdf File-Format: application/pdf Classification-JEL:F14, F16, J31 Keywords:wage premium, quantile regression, exporter, multinational enterprises, foreign-owned fiems Handle: RePEc:kue:epaper:e-17-013 Template-Type: ReDIF-Paper 1.0 Title:A theory of disasters and long-run growth Author-Name:Hiroaki Sakamoto Author-Name-First:Hiroaki Author-Name-Last:Sakamoto Author-Name:Ken-Ichi Akao Author-Name-First:Ken-Ichi Author-Name-Last:Akao Abstract:This paper develops a general framework that can be used to analyze the longterm relationship between disasters and economic growth. We first establish the basic existence and equivalence results. We then apply the framework to an endogenous growth model to consider the influence of disasters on the long-term equilibrium and the transition phase. The result shows that while experiencing disasters may lower the average growth rate of the affected countries, there exist various channels through which the risk of disasters and long-term economic performance are positively correlated. This finding reconciles the apparently contradictory evidence in recent empirical studies. Our result also suggests that care should be taken with the interpretation of disaster-driven economic growth because many of the channels identified are accompanied by a welfare decline. Length:40 Creation-Date: 2018-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-014.pdf File-Format: application/pdf Classification-JEL:O41; O44; C61 Keywords:disasters; dynamic optimization; long-term growth; endogenous growth; aggregate uncertainty Handle: RePEc:kue:epaper:e-17-014 Template-Type: ReDIF-Paper 1.0 Title:A Note on the Degree of Scale Economies when Firms Make Technology Choice Author-Name:Koji SHINTAKU Author-Name-First:Koji Author-Name-Last:SHINTAKU Abstract:We construct a simple model to demonstrate how the rm-level degree of scale economies (D-SE) is determined when rms make technology choice. In particular, we illustrate the importance of factors external to rms that affect the efficiency of rms' technology choice, when determining D-SE. We interpret the external factors as public knowledge stock. A change in public knowledge stock affects D-SE both directly through knowledge spillover reinforcing technology choice and indirectly through a change in the rm's output. When output is endogenized in a monopolistic competition model with a variable mark-up rate, an increase in public knowledge stock raises D-SE through technology upgrading if the mark- up rate is increasing in output. This can be testable because public knowledge stock has some measurements. There is an policy implication that various policies with knowledge stock affect D-SE as policies with xed costs. Length:18 Creation-Date: 2018-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-17-015.pdf File-Format: application/pdf Classification-JEL:D21, D24, F10, F12, L11, L16. Keywords:disasters; Degree of scale economies; Technology choice; Public knowledge stock;Knowledge spillover; Variable mark-up rate. Handle: RePEc:kue:epaper:e-17-015 Template-Type: ReDIF-Paper 1.0 Title:Hidden Profiles and Persuasion Cascades in Group Decision-Making Author-Name:Saori CHIBA Author-Name-First:Saori Author-Name-Last:CHIBA Abstract:We provide a model to explain hidden profiles, a series of persuasion cascades where players choose not to share their private information with the others and the group therefore fails. In our model, rational players will jointly select a decision. Attributes decide which decision is optimal, but each player privately and imperfectly knows these attributes. Hence, before decision-making, the players meet and sequentially talk. A player benevolently talks based on his limited information. But under communication constraints, the benevolent talk may cause the next player to infer that a suboptimal decision is most likely to be optimal. The next player repeats the previous talk because he is afraid that his private information may misguide the group. In this way, the players persuade one another by withholding private information. Length:40 Creation-Date: 2018-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-001.pdf File-Format: application/pdf Classification-JEL:D79, D82, D83. Keywords:disasters;Group Decision-Making. Hidden Profiles. Persuasion Cascades. Handle: RePEc:kue:epaper:e-18-001 Template-Type: ReDIF-Paper 1.0 Title:A System Dynamics Study on the Prospect of Japanese Plutonium Balance Author-Name:Shutaro TAKEDA Author-Name-First:Shutaro Author-Name-Last:TAKEDA Author-Name:Takeshi SAKADE Author-Name-First:Takeshi Author-Name-Last:SAKADE Author-Name:Hideki IWAKI Author-Name-First:Hideki Author-Name-Last:IWAKI Abstract:The authors conducted a quantitative reevaluation of the short-term Japanese plutonium balance forecast until 2040 with a new numeric model, in the aim of contributing to the policy making toward the stable US-Japan alliance as well as the East Asian region. The Japanese nuclear fuel cycle was replicated as a system dynamics model on Stella with officially available statistical data. The Monte Carlo method was used to estimate the range of the capacities Japanese nuclear power plants until 2040. The simulation results showed the peak accumulation of plutonium in Japan would be observed around 2025. This indicates that while the plutonium imbalance in Japan would be a point of concern for the next five years, the situation will likely mitigate. Consequently, even if lowering the capacity of Rokkasho reprocessing plant were to be possible, it would not make a significant difference if it takes more than five years. As a result, the authors conclude that if we were to hurry the resolution of the current Japanese plutonium imbalance issues, the Japanese government has to either consider to limit the restarting of NPPs to newer plants or to cut the operation rate of Rokkasho reprocessing plant from the first year. Length:13 Creation-Date: 2018-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-002.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-18-002 Template-Type: ReDIF-Paper 1.0 Title:Vagueness of Language: Indeterminacy under Two-Dimensional State Uncertainty Author-Name:Saori CHIBA Author-Name-First:Saori Author-Name-Last:CHIBA Abstract:We study indeterminacy of indicative meanings (disagreements about meanings of messages among players), a kind of language vagueness examined in Blume and Board (2013). They, using a cheap talk model in which the state distribution and the players’ language competence were ex-ante uncertain, demonstrated that this vagueness occurs as the equilibrium language. We expand the work of Blume and Board by using a model between an uninformed decision maker and an informed agent in which the state-distribution and the state are both exante uncertain. We show that this two-dimensional uncertainty also leads to indeterminacy of indicative meanings, that is, to a set of conditions in which an agent with different perceptions of state-distribution intentionally uses the same symbol for the different extents of information on the state. Our vagueness can lead to welfare improvement. Length:34 Creation-Date: 2018-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-003.pdf File-Format: application/pdf Classification-JEL:D82, D83, M14. Keywords:Information. Language. State-Uncertainty. Vagueness. Handle: RePEc:kue:epaper:e-18-003 Template-Type: ReDIF-Paper 1.0 Title:Effects of Recognition versus Disclosure of Finance Leases on Audit Fees and Costs: Evidence from Japan Author-Name:Masaki KUSANO Author-Name-First:Masaki Author-Name-Last:KUSANO Author-Name:Yoshihiro SAKUMA Author-Name-First:Yoshihiro Author-Name-Last:SAKUMA Abstract:This study examines the effects of recognized versus disclosed lease arrangements in the Japanese audit market. In particular, we investigate whether the relations between recognized versus disclosed finance leases and audit fees and costs are different and whether these relations differ between audit fees and costs. We find that recognized finance leases are associated with audit fees while disclosed finance leases are not. Moreover, the associations between recognized versus disclosed finance leases and audit fees are substantially different. However, neither recognized nor disclosed finance leases are associated with audit costs, and recognized and disclosed finance leases have similar associations with audit costs. These results suggest that audit effort does not differ between recognized and disclosed finance leases and that a risk premium is charged to recognized finance leases relative to disclosed finance leases. Our results are not consistent with the view that investors’ differential treatments between recognized and disclosed items are due to the reliability of accounting information. This study makes contributions to the accounting literature on recognition versus disclosure and has implications for the global convergence of accounting standards. Length:42 Creation-Date: 2018-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-004.pdf File-Format: application/pdf Classification-JEL:M41, M42, M48 Keywords:Recognition versus Disclosure, Finance Leases, Audit Fees, Audit Costs Handle: RePEc:kue:epaper:e-18-004 Template-Type: ReDIF-Paper 1.0 Title:Simultaneous Effect of Monetary and Non-Monetary Interventions on Crowd-Funding Field Experimental Evidence:R&D in New Sources of Energy Author-Name:Tetsuya KAWAMURA Author-Name-First:Tetsuya Author-Name-Last:KAWAMURA Author-Name:Takanori Ida Author-Name-First:Takanori Author-Name-Last:IDA Author-Name:Kazuhito Ogawa Author-Name-First:Kazuhito Author-Name-Last:OGAWA Abstract:Crowd funding is a well-known way of financing research and development (R&D). Conducting a randomized control trial online field experiment, we investigated which participants donated toward the R&D of new energy, and which of three interventions facilitate donation: “matching”, “social pressure” and “matching & pressure”. Results indicate that: (1) all interventions significantly increase the donation rate, (2) the interventions have a heterogeneous effect based on gender and age, (3) the crowding out of “matching” was observed only for the participants with high intrinsic motives, and (4) the sub-additive synergy between interventions was observed only for participants with low intrinsic motives. Length:49 Creation-Date: 2018-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-005.pdf File-Format: application/pdf Classification-JEL:C72, C93, D64 Keywords:Online Field Experiment; Donation; Matching Fund; Social Pressure; Crowding out Handle: RePEc:kue:epaper:e-18-005 Template-Type: ReDIF-Paper 1.0 Title:Supervisors’Responses to Employee Voice Behavior: An Experimental Study in China and Japan Author-Name:Yunyue YANG Author-Name-First:Yunyue Author-Name-Last:YANG Author-Name:Jie LI Author-Name-First:Jie Author-Name-Last:LI Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:This study examines how supervisors respond to employee voice behavior in the Asian context considering the following factors: The target of voice, the expertise of the voicing employee, and the supervisor’s sense of power. We conducted a scenario-based experimental study using Chinese and Japanese samples and found that speaking up to skiplevel leaders rather than immediate supervisors was negatively related to the evaluations of voicing employees, which was partially mediated by liking in both samples and perceived threat in the Chinese sample. We also found that the expertise of voicing employees was positively related to the evaluations of voicing employees, but it also had a negative indirect effect on the evaluations through perceived threat against the employees in the Japanese sample. Moreover, for the Chinese sample, supervisors’ sense of power moderated some of the effects of target of voice and the expertise of the voicing employees on supervisors’ reactions. We discuss theoretical and practical implications and future research directions. Length:49 Creation-Date: 2018-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-006.pdf File-Format: application/pdf Classification-JEL: Keywords:voice, target, expertise, sense of power, China, Japan Handle: RePEc:kue:epaper:e-18-006 Template-Type: ReDIF-Paper 1.0 Title:Information Aggregation and Countervailing Biases in Organizations Author-Name:Saori CHIBA Author-Name-First:Saori Author-Name-Last:CHIBA Author-Name:Kaiwen LEONG Author-Name-First:Kaiwen Author-Name-Last:LEONG Abstract:A decision maker relies on an agent for decision-relevant information. We consider two dimensions of biases—one over projects (project bias) often assumed in cheap talk models à la Crawford and Sobel (1982) and the other over the outside option (pandering bias) scrutinized in Che, Dessein and Kartik (2013). The two biases counteract each other. This effect is more significant as payoffs to different projects are more highly negatively correlated. As a result, a larger project bias can facilitate cheap talk communications and benefit the players. Due to this correlation-driven countervailing biases, the comparison between vetobased delegation and non-delegation is not trivial. Length:29 Creation-Date: 2018-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-007.pdf File-Format: application/pdf Classification-JEL:D82, D83. Keywords:Bias, Cheap Talk, Correlation, Outside Option. Handle: RePEc:kue:epaper:e-18-007 Template-Type: ReDIF-Paper 1.0 Title:How Does UNESCO's Convention on Cultural Diversity Affect Trade in Cultural Goods? Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Ayumu TANAKA Author-Name-First:Ayumu Author-Name-Last:TANAKA Abstract:After a long and heated argument on whether international trade in cultural goods should be an exception to free trade, UNESCO's Convention on Cultural Diversity (CCD) was adopted and entered into force in 2007 to protect and promote cultural diversity. This paper provides the rst empirical assessment of the impact of CCD on trade in cultural goods. By using trade data for 2004{2010 and employing the rst-differenced difference-in-differences method, we estimate the effects of ratifying CCD on the imports of cultural goods and on the extensive margin of cultural imports. Our estimation results provide little evidence that CCD is an instrument of disguised protectionism. Furthermore, we nd that CCD contracting countries tend to increase the country margins of cultural imports for some subcategories of cultural goods more than CCD non-contracting countries. This change implies that CCD contributes to the promotion of cultural diversity. Length:25 Creation-Date: 2019-01 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-008.pdf File-Format: application/pdf Classification-JEL:F13, F14, Z10 Keywords:trade and culture; cultural goods; UNESCO's Convention on Cultural Diversity; Difference-in-differences Handle: RePEc:kue:epaper:e-18-008 Template-Type: ReDIF-Paper 1.0 Title:On Identification of Ambiguity Premium Author-Name:Katsutoshi WAKAI Author-Name-First:Katsutoshi Author-Name-Last:WAKAI Abstract:Based on the smooth model of decision making under ambiguity as proposed by Klibanoff, Marinacci, and Mukerji (2005, 2009), we derive a method that selects assets whose regression constant from the factor regression captures ambiguity premium. Length:14 Creation-Date: 2019-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-18-009.pdf File-Format: application/pdf Classification-JEL:D81, G11, G12 Keywords:Ambiguity aversion, asset pricing, factor pricing Handle: RePEc:kue:epaper:e-18-009 Template-Type: ReDIF-Paper 1.0 Title:Deregulation and status quo bias: Evidence from stated and revealed switching behaviors in the electricity market in Japan Author-Name:Kayo MURAKAMI Author-Name-First:Kayo Author-Name-Last:MURAKAMI Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:This study investigates consumers’ status quo bias against new alternatives after deregulation in the residential electricity market in Japan. We conducted two choice experiments using online surveys before and after deregulation, and analyzed the relationship between consumers’ stated preferences and their revealed switching behaviors. The results indicate that the average Japanese consumer experiences status quo bias in electricity plan choice; consumers preferred to remain with their default provider despite the obvious 5% bill savings that could be gained from switching to a new provider. Moreover, respondents who did not switch in the real market became twice as attached to their default plan after their actual decision. In addition, respondents who switched soon after deregulation had a higher stated preference for renewable energy sources. This implies that new electricity plans that enhance clean energy have more potential to moderate consumer status quo bias in electricity plan choice. By simulating the potential share of new providers in the liberalized market, we found that a 50% renewable-energy plan has a larger potential market share than a plan that offers a 7% bill reduction under price competition. Length:30 Creation-Date: 2019-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-001.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-19-001 Template-Type: ReDIF-Paper 1.0 Title:Sober optimism and the formation of international environmental agreements Author-Name:Hiroaki SAKAMOTO Author-Name-First:Hiroaki Author-Name-Last:SAKAMOTO Author-Name:Larry KARP Author-Name-First:Larry Author-Name-Last:KARP Abstract:We analyze a dynamic model of international environmental agreements (IEAs) where countries cannot make long-term commitments or use sanctions or rewards to induce cooperation. Countries can communicate with each other to build endogenous beliefs about the random consequences of (re)opening negotiation. If countries are patient, an effective agreement can be reached after a succession of short-lived ineffective agreements. This eventual success requires \sober optimism": the understanding that cooperation is possible but not easy to achieve. Negotiations matter because beliefs are important. An empirical application illustrates the importance of sober optimism in the climate agreement. Length:33 Creation-Date: 2019-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-002.pdf File-Format: application/pdf Classification-JEL:C72; C73; D62; H41; Q54 Keywords:Environmental agreements; Climate change; Dynamic game Handle: RePEc:kue:epaper:e-19-002 Template-Type: ReDIF-Paper 1.0 Title:Survey on Accounting for Goodwill Author-Name:Yoshihiro TOKUGA Author-Name-First:Yoshihiro Author-Name-Last:TOKUGA Author-Name:Toshitake MIYAUCHI Author-Name-First:Toshitake Author-Name-Last:MIYAUCHI Author-Name:Tomoaki YAMASHITA Author-Name-First:Tomoaki Author-Name-Last:YAMASHITA Abstract: This study aims to respond to the global controversy surrounding “whether impairment ought also to be performed in the regular amortization of(acquired) goodwill, or should only be treated with impairment without regular amortization” and to deepen our understanding of the views of users and preparers of financial statements. The study a questionnaire survey targeting companies that prepare financial statements and analysts that use financial statements. and thus comtributes to resolving the controversy. As pioneering efforts to investigate the awareness of preparers surrounding accounting for goodwill after an acquisition, prior investigations by the Japan Business Federation (JBF) and the Accounting Standards Board of Japan (ASBJ) targeted only a small number of companies. In addition, a survey was conducted by the ASBJ to investigate user awareness using direct interviews with a small number of analysts. Therefore, to deepen the understanding of preparer and user awareness, we conducted a survey that included additional questions and options not dealt with in the prior studies. Moreover, we expanded the survey targets to 1,379 companies of the JBF(264 effective responses: 19.1%), 1,339 listed companies not affiliated with the JBF (185 effective responses, 13.5%),and 673 analysts (130 effective responses: 19.3%). The results of this survey clarified several issues. First, with regards to whether “impairment only (non-amaortization)” or “regular amortization + impairment” is preferred, approximately 70% of preparers answered that “regular amortization + impairment” is more desirable. The same trend was confirmed even when the responses were split into “JBF members/non-members” and “manufacturing/non-manufacturing” subsamples. For usere, approximately 60% responded that “regular amortization + impairment” was preferable. Next, when asked about the reasons for their support for “impairment only(non-amortization)” or “regular amortization + impairment,” both preparers and users responded that “performing the appropriate impairment test eliminates the need for regular amortization” was the most powerful reason for the first option. For the second option, both preparers and users stated the most compelling reason was “to make it correspond to profit through an appropriate allocation period(investment recovery calculation).”However,users showed similar support for “consistency with accounting dor other depreciable assets.” In addition, this survey asks whether regulating the goodwill amortization period is appropriate, what a desirable amortization period would be, whether the “impairment only(non-amortized)/regular amortization + impairment” options are appropriate, other alternative methods of accounting for goodwill, the nature of goodwill as an asset, and the relationship between goodwill accounting and M&A decision making. Additionally, it asks users whether they add goodwill amortization expense back to revenue and if they deduct the value of goodwill from net assets analyzing securities. Length:90 Creation-Date: 2019-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-003.pdf File-Format: application/pdf Classification-JEL: Keywords:goodwill, regular amortization, impairment, questinnaire, Keidanren, Analysts Association Handle: RePEc:kue:epaper:e-19-003 Template-Type: ReDIF-Paper 1.0 Title:Gain/Loss Asymmetric Stochastic Differential Utility Author-Name:Yuki SHIGETA Author-Name-First:Yuki Author-Name-Last:SHIGETA Abstract:This study examines a gain/loss asymmetric utility in continuous time in which the investor discounts their utility gain by more than the utility loss. By employing the theory of stochastic di erential utility, the model allows a time-variable sub- jective discount rate. In addition, the model can express various forms of utility functions including a version of the Epstein{Zin utility. Under the model, the opti- mal consumption/wealth ratio and portfolio weight have di erent functional forms depending on whether the state variables stay in some region. Length:47 Creation-Date: 2019-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-004.pdf File-Format: application/pdf Classification-JEL:D15, G11, G40 Keywords:Gain/Loss Asymmetry, Stochastic Di erential Utility, Consumption{Investment Problem Handle: RePEc:kue:epaper:e-19-004 Template-Type: ReDIF-Paper 1.0 Title:Can information alleviate overconfidence? A randomized experiment on financial market predictions Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Author-Name:Ryo OKUI Author-Name-First:Ryo Author-Name-Last:OKUI Abstract:In this study, we examine how information provision a ects the degree of overcon dence using an online experiment. The 4,210 experimental participants engaged in stock market prediction exercises were asked to evaluate their absolute and relative performance. We conducted a randomized controlled trial such that randomly selected participants obtained information about their own performance and/or the distribution of others' performances before evaluating their performances. We nd that while participants exhibit overcon dence bias, this can be alleviated by information provision and that the e ect of the elimination of overcon dence is stronger when only partial information, rather than complete information, is provided. Further, the results indicate that the mere provision of information, even if it is consistent with prior beliefs, decreases the degree of overcon dence. Length:39 Creation-Date: 2019-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-005.pdf File-Format: application/pdf Classification-JEL:C91, D83, D91, G41. Keywords:Overcon dence, information provision, randomized controlled trial, online experiment, stock market prediction. Handle: RePEc:kue:epaper:e-19-005 Template-Type: ReDIF-Paper 1.0 Title:The Effect of Information Provision on Stated and Revealed Preferences:A Field Experiment on the Choice of Power Tariffs Before and After Japanese Retail Electricity Liberalization Author-Name:Takunori ISHIHARA Author-Name-First:Takunori Author-Name-Last:ISHIHARA Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:This paper examines differences in attitudes towards electricity fee plans when information is provided on electricity bills based on past electricity consumption. We conducted randomized controlled trial stated preference (SP) and revealed preference (RP) experiments on the choice of electricity rates before and after liberalization. In the SP experiment, we measured participants' valuations of their electricity pricing plans. We found that providing information about the participants' benefit from switching diminished the tendency towards overconfidence. The valuation decreases substantially, when information is provided showing that a loss will be incurred from switching. The results of the RP and SP experiments differ. We found that the selection was not changed in the RP experiment, even when providing information that a loss would be incurred. Length:49 Creation-Date: 2019-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-006.pdf File-Format: application/pdf Classification-JEL:C93, D91, Q49. Keywords:Randomized controlled trial (RCT), Stated preference, Revealed preference, Information provision, Power tariff, Overconfidence. Handle: RePEc:kue:epaper:e-19-006 Template-Type: ReDIF-Paper 1.0 Title:Recognition versus Disclosure and Audit Fees and Costs:Evidence from Pension Accounting in Japan Author-Name:Masaki KUSANO Author-Name-First:Masaki Author-Name-Last:KUSANO Author-Name:Yoshihiro SAKUMA Author-Name-First:Yoshihiro Author-Name-Last:SAKUMA Abstract:Statement No. 26, Accounting Standard for Retirement Benefits, requires Japanese firms to recognize previously off-balance sheet pension liabilities on their balance sheets. We explore auditors’ responses to recognized versus disclosed pension liabilities in the Japanese audit market. We use a pre-Statement No. 26 versus post-Statement No. 26 setting to analyze the effects of disclosed versus recognized pension information on audit fees and costs. We show that disclosed pension liabilities are processed similarly to recognized previously off-balance sheet pension liabilities when audit fees are determined. However, we find that associations with audit costs differ between disclosed and recognized pension liabilities. We also find that audit costs’ differential relations with disclosed and recognized pension liabilities are particularly pronounced for firms with a large pension plan deficit. Overall, our results suggest that auditors scrutinize recognized amounts more closely than disclosed financial information, thereby increasing the reliability of accounting information. Length:56 Creation-Date: 2019-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-007.pdf File-Format: application/pdf Classification-JEL:M41, M42, M48 Keywords:Recognition versus Disclosure, Pension Accounting, Audit Fees, Audit Costs Handle: RePEc:kue:epaper:e-19-007 Template-Type: ReDIF-Paper 1.0 Title:Nudging Physical Activity:A Randomized Controlled Field Experiment Author-Name:Takunori ISHIHARA Author-Name-First:Takunori Author-Name-Last:ISHIHARA Author-Name:Taro TOMIZUKA Author-Name-First:Taro Author-Name-Last:TOMIZUKA Author-Name:Rei GOTO Author-Name-First:Rei Author-Name-Last:GOTO Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:In this paper, we discuss a field experiment for encouraging behavioral changes that could result in engagement in physical activity using two types of “nudges”: private information and social comparison information. In our experiment, the information provision group was notified solely about their own average step number. The social comparison group received information about their own average steps and a frequency distribution table describing both the relative ranking of each person and the distribution of steps in the group. Our findings are summarized as follows. First, we found the positive effects by private information and social comparison information. Second, we found the effect of social comparison in addition to information provision treatment was larger than the private information treatment only. Finally, we found the effects of treatments do not decrease or vanish during our experiment. Length:21 Creation-Date: 2019-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-009.pdf File-Format: application/pdf Classification-JEL:C93, D91, I1. Keywords:Randomized Controlled Trial (RCT), Physical Activity (PA), Information Provision, Social Comparison. Handle: RePEc:kue:epaper:e-19-009 Template-Type: ReDIF-Paper 1.0 Title:A New Approach for Quantifying the Costs of Utilizing Regional Trade Agreements Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Kazunobu HAYAKAWA Author-Name-First:Kazunobu Author-Name-Last:HAYAKAWA Author-Name:Nuttawut LAKSANAPANYAKUL Author-Name-First:Nuttawut Author-Name-Last:LAKSANAPANYAKUL Author-Name:Toshiyuki MATSUURA Author-Name-First:Toshiyuki Author-Name-Last:MATSUURA Author-Name:Taiyo YOSHIMI Author-Name-First:Taiyo Author-Name-Last:YOSHIMI Abstract:This study proposes a new approach for quantifying two kinds of costs related to the utilization of regional trade agreements (RTAs). The first, which we call the “procurement adjustment cost,” represents the cost involved in meeting rules of origin through the adjustment of procurement sources. The second is the additional fixed costs required to utilize RTAs, including document preparation costs for the certification of origin. The proposed approach makes it possible to compute these two costs separately using product-level data. It is built on a model of international trade where heterogeneous exporters decide which tariff scheme to use. Applying our approach to Thailand’s imports from China, our estimates suggest that procurement adjustment costs to comply with RTA rules of origin at the median are equivalent to 4% of per-unit production costs. In addition, RTA utilization requires an additional 27% of fixed costs. Furthermore, simulation analysis shows that a reduction of the additional fixed costs by half would raise the RTA utilization rate by 13 percentage points, while the complete elimination of procurement adjustment costs would raise the RTA utilization rate by 32 percentage points. Length:37 Creation-Date: 2020-01 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-010.pdf File-Format: application/pdf Classification-JEL: F15; F53 Keywords:Regional trade agreement; Preference utilization; Cost estimation Handle: RePEc:kue:epaper:e-19-010 Template-Type: ReDIF-Paper 1.0 Title:Moral utility or Moral Tax? Experimental Study of Electricity Conservation by Social Comparison Author-Name:Kenta TANAKA Author-Name-First:Kenta Author-Name-Last:TANAKA Author-Name:Yukihide KURAKAWA Author-Name-First:Yukihide Author-Name-Last:KURAKAWA Author-Name:Takunori ISHIHARA Author-Name-First:Takunori Author-Name-Last:ISHIHARA Author-Name:Ken-ichi AKAO Author-Name-First:Ken-ichi Author-Name-Last:AKAO Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:Social comparison, such as information on other consumer’s energy usage, can achieve equal or higher performance, compared with economic incentives. However, previous studies do not adequately reveal the informational content for social comparison that can encourage electricity conservation. This study investigates the effects of different social comparisons via a laboratory experiment. We set up a hypothetical situation of electricity use in a laboratory. Although many previous studies employing laboratory experiments invite residents as the subject of the experiments, the subject’s economic situation does not reflect the initial setting of the laboratory experiments. In our experiment, we set up the initial set of experiments based on each subject’s actual electricity usage in daily life. Therefore, our experiments approximate real behavior better than previous studies. The results show that any information about other consumers’ electricity usage increases the electricity conservation behavior of almost all the subjects. Thus, our results show that voluntary conservation by the social comparison scheme can improve the total welfare of the society. However, the results also demonstrate the importance of considering the psychological effect of social comparison. Length:40 Creation-Date: 2020-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-011.pdf File-Format: application/pdf Classification-JEL: Keywords:Electricity Conservation, Behavioral Economics, Artifactual Field Experiment, Social Comparison Handle: RePEc:kue:epaper:e-19-011 Template-Type: ReDIF-Paper 1.0 Title:Menu Mechanisms Author-Name:Andrew MACKENZIE Author-Name-First:Andrew Author-Name-Last:MACKENZIE Author-Name:Yu ZHOU Author-Name-First:Yu Author-Name-Last:ZHOU Abstract:We investigate menu mechanisms: dynamic mechanisms where at each history, an agent selects from a menu of his possible assignments. In comparison to direct mechanisms, menu mechanisms offer better privacy to participants; we formalize this with a novel notion of mechanism informativeness. We consider both ex-post implementation and full implementation, for both subgame perfection and a strengthening of dominance that covers off-path histories, and provide conditions under which menu mechanisms provide these implementations of rules. Our results cover a variety of environments, including elections, marriage, college admissions, auctions, labor markets, matching with contracts, and object allocation. Length:38 Creation-Date: 2020-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-19-012.pdf File-Format: application/pdf Classification-JEL:D82, D47, C78 Keywords:menu mechanism, privacy, strategy-proofness, robust implementation Handle: RePEc:kue:epaper:e-19-012 Template-Type: ReDIF-Paper 1.0 Title:Degree-K subgame perfect Nash equilibria and the folk theorem Author-Name:Zhonghao SHUI Author-Name-First:Zhonghao Author-Name-Last:SHUI Abstract:In infinitely repeated n-player games, we introduce a notion of degree-K subgame perfect Nash equilibria, in which any set of players whose size is up to K can coalitionally deviate and can transfer their payoffs within the coalition. If we only assume that players’ actions are observable, a coalitional deviation with hidden deviators who play as in the equilibrium cannot be detected by the other players. Hence we consider two models in which the hidden deviators can and cannot be detected, respectively. In the first model, there is an observer who can detect any coalitional deviation and report it to all players. We show an extension of the standard folk theorem; all feasible payoff vectors in which the sum of payoffs within any feasible coalition is strictly larger than the counterpart of the minmax value defined for the coalition arise as a degree-K subgame perfect Nash equilibrium if players are sufficiently patient. In the second model where the hidden deviators cannot be distinguished, we characterize degree-K subgame perfect equilibrium payoff vectors under patience by strategies which punish all players after any deviation. Finally, we adopt a new approach to characterize degree-n subgame perfect Nash equilibrium payoff vectors in the first model, since the punishment in the above folk theorem does not work when the grand coalition is feasible. Length:27 Creation-Date: 2020-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-001.pdf File-Format: application/pdf Classification-JEL:C72; C73; D43 Keywords:Folk theorem; Coalition; Perfect monitoring; Subgame perfect Nash equilibrium Handle: RePEc:kue:epaper:e-20-001 Template-Type: ReDIF-Paper 1.0 Title:Do Labor Clauses in Regional Trade Agreements Reduce the Trade Creation Effect? Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Isao KAMATA Author-Name-First:Isao Author-Name-Last:KAMATA Abstract:We empirically test the hypothesis that labor clauses (LCs) in regional trade agreements (RTAs) reduce the trade creation effect of RTAs. We estimate a structural gravity model using a panel of bilateral trade data for the sample of 190 countries/regions for the 25-year period of 1990–2014. Using the Poisson pseudo-maximum likelihood estimator, we find that legally enforceable LCs are likely to enhance the trade creation effect of RTAs, whereas legally unenforceable LCs could reduce it, on average. We also find that these impacts of LCs on the RTAs’ trade creation effect are heterogeneous among the types of country pairs: the positive impact of legally enforceable LCs is significant for trade between developed countries but insignificant for trade between developing countries; and the impact of legally unenforceable LCs is significantly negative for trade between developed countries, although it is rather positive for trade to developing importers. Moreover, we find that, when we deal with the endogeneity issue, the estimated impacts of LCs become insignificant, suggesting that countries may selectively decide whether they include LCs in the negotiated RTAs considering their potential impacts on trade with the RTA partners. Length:20 Creation-Date: 2020-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-002.pdf File-Format: application/pdf Classification-JEL:F14; F15; F16. Keywords:labor clause; legal enforceability; regional trade agreement; trade creation effect; structural gravity model. Handle: RePEc:kue:epaper:e-20-002 Template-Type: ReDIF-Paper 1.0 Title:Heterogeneous Treatment Effects of Nudge and Rebate:Causal Machine Learning in a Field Experiment on Electricity Conservation Author-Name:Kayo MURAKAMI Author-Name-First:Kayo Author-Name-Last:MURAKAMI Author-Name:Hideki SHIMADA Author-Name-First:Hideki Author-Name-Last:SHIMADA Author-Name:Yoshiaki USHIFUSA Author-Name-First:Yoshiaki Author-Name-Last:USHIFUSA Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:This study investigates the different impacts of monetary and nonmonetary incentives on energy-saving behaviors using a field experiment conducted in Japan. We find that the average reduction in electricity consumption from rebate is 4%, while that from nudge is not significantly different from zero. Applying a novel machine learning method for causal inference (causal forest) to estimate heterogeneous treatment effects at the household level, we demonstrate that the nudge intervention’s treatment effects generate greater heterogeneity among households. These findings suggest that selective targeting for treatment increases the policy efficiency of monetary and nonmonetary interventions. Length:48 Creation-Date: 2020-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-003.pdf File-Format: application/pdf Classification-JEL:D9, C93, Q4 Keywords:Causal Forest, Rebate，Nudge, Randomized Controlled Trial, Energy, Machine Learning Handle: RePEc:kue:epaper:e-20-003 Template-Type: ReDIF-Paper 1.0 Title:The Effect of Foreign Dividend Exemption on Profit Repatriation through Dividends, Royalties, and Interest: Evidence from Japan Author-Name:Makoto HASEGAWA Author-Name-First:Makoto Author-Name-Last:HASEGAWA Author-Name:Michi KAKEBAYASHI Author-Name-First:Michi Author-Name-Last:KAKEBAYASHI Abstract:Multinational corporations repatriate foreign profits through dividends, royalties, and interest paid by foreign affiliates to their parent firms. International tax rules concerning how to tax repatriated foreign earnings influence decisions on profit repatriation. In 2009, Japan introduced a foreign dividend exemption system (so-called territorial tax system) that exempted dividends received by Japanese firms from their foreign affiliates from home-country taxation. This paper examines the effects of this tax reform on profit repatriation through dividends, royalties, and interest. The enactment of the foreign dividend exemption system decreased the effective tax rate on foreign income repatriated through dividends on average by 6.8 percentage points in 2009. We find that in response to this tax rate reduction, Japanese-owned foreign affiliates increased dividend payments, but did not change either royalty or interest payments. As a result, these affiliates increased the total payments to their Japanese parents. Length:41 Creation-Date: 2023-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-004-V2.pdf File-Format: application/pdf Classification-JEL:H25; H26; F23 Keywords:International taxation; Multinational corporations; Profit repatriation; Foreign dividend exemption; Worldwide tax system; Territorial tax system Handle: RePEc:kue:epaper:e-20-004-V2 Template-Type: ReDIF-Paper 1.0 Title:Does Recognition versus Disclosure of Pension Liabilities Affect Credit Ratings? Evidence from Japan Author-Name:Masaki KUSANO Author-Name-First:Masaki Author-Name-Last:KUSANO Abstract:Whether credit market participants process disclosure and recognition of pension information differently has not been fully explored. To fill this gap, this study investigates whether the change in a pension accounting standard related to the recognition rule influences firms’ credit risk in Japan. Statement No. 26, Accounting Standard for Retirement Benefits, stipulates that firms recognize previously disclosed pension information on the balance sheet. Employing the implementation of Statement No. 26, I explore how differences between disclosed and recognized pension liabilities affect credit ratings. I find that off-balance sheet pension liabilities are associated with credit ratings prior to Statement No. 26. I also find similar relations between disclosure versus recognition of pension liabilities and credit ratings. Particularly, when pension information is highly reliable, off-balance sheet pension liabilities provide risk-relevant information, and the risk relevance of disclosed and recognized pension liabilities is statistically similar. My overall results reveal that, to the extent that accounting information is reliable, credit rating agencies fully incorporate off-balance sheet pension information into credit ratings, suggesting that mandating pension recognition does not affect firms’ credit ratings. Length:44 Creation-Date: 2020-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-005.pdf File-Format: application/pdf Classification-JEL:M41, M48 Keywords:Recognition versus Disclosure, Pension Accounting, Credit Ratings, Reliability of Accounting Information Handle: RePEc:kue:epaper:e-20-005 Template-Type: ReDIF-Paper 1.0 Title:Ex post fairness and ex ante fairness in social preferences under risk Author-Name:Seiji TAKANASHI Author-Name-First:Seiji Author-Name-Last:TAKANASHI Abstract:We extend the domain of social preferences, which depend on not only one’s outcomes but also vectors of outcomes of all other agents, from deterministic outcome vectors to lotteries over outcome vectors. First, we axiomatically characterize a class of utility functions which satisfies the expected utility theory and reversal of order as far as these two requirements are consistent with ex post fairness and ex ante fairness. Based on this class, we characterize three classes of utility functions which additionally satisfy ex ante fairness, inequality-aversion, and ex post fairness for probability mixture, respectively. Finally, we characterize our main class of utility functions which satisfies these axioms. Saito (2013) also axiomatizes social preferences on lotteries over the outcome vectors which are an extension of the utility functions proposed by Fehr and Schmidt (1999). We characterize a wider class of utility functions which explains heterogeneous attitudes of how much the decision maker cares about ex ante fairness and ex post fairness toward each agent. Moreover, we provide an additional axiom under which our class of utility functions coincides with Saito’s class of utility functions. We reveal that the axiom requires that the attitudes are the same among all the agents. Length:34 Creation-Date: 2021-01 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-006.pdf File-Format: application/pdf Classification-JEL:D81, D63, D91 Keywords:Social preference, Risk, Fairness Handle: RePEc:kue:epaper:e-20-006 Template-Type: ReDIF-Paper 1.0 Title:Labor Market Flexibility and Inward Foreign Direct Investment:Incentive or Outcome? Author-Name:Isao KAMATA Author-Name-First:Isao Author-Name-Last:KAMATA Abstract:Are inward FDI and its increase related to the domestic labor market conditions in the host economy? This is still an open question, as literature to date has provided mixed evidence. This paper empirically addresses this question by testing the debated relationship in both possible “causal” directions—i.e., testing (i) whether the host’s labor market flexibility—or strictness—leads an increase in inward FDI and (ii) whether it follows inward FDI, using publicly accessible macro-level data. The first set of estimation shows that a host country with relaxed employment protection tends to attract more inward FDI, which is consistent with the findings in some recent studies. The analysis also indicates that this relationship should chiefly be the case in the “traditional” OECD members but may not apply to other countries. On the other hand, the second set of estimation indicates that increased inward FDI could result in loosened employment protection. This impact may not be immediately apparent but could be more significant in a longer time horizon. Length:32 Creation-Date: 2021-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-007.pdf File-Format: application/pdf Classification-JEL:F16, F21, F66, J80 Keywords:Foreign direct investment, Labor market flexibility, Labor conditions,Employment protection Handle: RePEc:kue:epaper:e-20-007 Template-Type: ReDIF-Paper 1.0 Title:Gravity for Cross-border Licensing and the Impact of Deep Trade Agreements: Theory and Evidence Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Yukiko SAWADA Author-Name-First:Yukiko Author-Name-Last:SAWADA Author-Name:Xingyuan ZHANG Author-Name-First:Xingyuan Author-Name-Last:ZHANG Author-Name:Shoji HARUNA Author-Name-First:Shoji Author-Name-Last:HARUNA Abstract:We examine whether deep regional trade agreements (RTAs) facilitate cross-border technology transfer. The mode of technology transfer we focus on is licensing. We first derive a micro-founded structural gravity model for cross-border licensing from a model in which heterogeneous firms choose to supply their goods to foreign markets through export, foreign direct investment, or licensing. We show several comparative statics results regarding the effects of changes in the fixed costs of serving the destination country, the freeness of trade, and the strength of intellectual property rights (IPR) protection on bilateral flows of licensing revenues. We then empirically test our theoretical predictions using data on cross-border flows of royalties and license fees for 49 countries in the period 1995–2012. Various dummy variables and indexes are used to capture the impact of shallow and deep RTAs on cross-border licensing. Consistent with our theoretical predictions, we find that improved access to the destination market through a deep RTA and stronger IPR protection through an RTA with legally enforceable IPR provisions and technologyrelated provisions increase bilateral flows of licensing revenues. By contrast, a shallow RTA without IPR provisions does not increase cross-border licensing revenues. Length:45 Creation-Date: 2021-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-20-008.pdf File-Format: application/pdf Classification-JEL:F15; O33. Keywords:regional trade agreement; deep integration; technology transfer; licensing; gravity model. Handle: RePEc:kue:epaper:e-20-008 Template-Type: ReDIF-Paper 1.0 Title:Gewalt, Gold, God (Aircraft Industry, International Debt, Democracy in Cyberspace)-World History from the Perspective of Weapons- Author-Name:Takeshi SAKADE Author-Name-First:Takeshi Author-Name-Last:SAKADE Abstract: Length:6 Creation-Date: 2021-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-001.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-21-001 Template-Type: ReDIF-Paper 1.0 Title:Delineating zero-price markets with network effects:An analysis of free messenger services Author-Name:Akihiro NAKAMURA Author-Name-First:Akihiro Author-Name-Last:NAKAMURA Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:Billions of users worldwide use digital zero-price services every day. This study proposes a market definition method for digital zero-price services, using the messenger service as an example. We employ the small but significant non-transitory increase in cost (SSNIC) test, which is an improved version of the small but significant non-transitory increase in price (SSNIP)　test, and conduct conjoint analysis while considering the network effect, a characteristic of digital services. Our results show that the price elasticity of demand is 0.628 and the critical markup ratio is 1.492–1.542 when only the price effect is considered. When the direct network effect is considered, the price elasticity of demand is 1.728 and the critical markup ratio is 0.479–0.529. Furthermore, when considering a two-sided market with indirect network effects, the price elasticity of demand is 2.162 and the critical markup ratio is 0.363–0.413. Thus, the price elasticity of demand for free messenger services is higher when the network effects and two-sided markets are considered. Length:22 Creation-Date: 2021-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-002.pdf File-Format: application/pdf Classification-JEL:L13, L52, L41, L86, L96 Keywords:Freemium services, Market definition, Competitive policy, Conjoint analysis Handle: RePEc:kue:epaper:e-21-002 Template-Type: ReDIF-Paper 1.0 Title:Pass-Through and the Welfare Effects of Taxation under Imperfect Competition: A General Analysis Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Author-Name:Michal Fabinger Author-Name-First:Michal Author-Name-Last:FABINGER Abstract:This paper provides a comprehensive analysis of welfare effects of taxation under imperfect competition. Specifically, in relation to tax pass-through, we provide “sufficient statistics” formulas for two welfare measures under a fairly general class of demand, production cost, and market competition. The measures are (i) marginal value of public funds (i.e., the marginal loss of social welfare due to an increase in government revenue), and (ii) incidence (i.e., the ratio of a marginal change in consumer surplus to a marginal change in producer surplus). We begin with the case of symmetric firms facing both unit and ad valorem taxes to derive a simple and empirically relevant set of formulas. Then, we provide a substantial generalization of these results to encompass firm heterogeneity by using the idea of tax revenue specified as a general function parameterized by a vector of tax parameters. Length:87 Creation-Date: 2021-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-003.pdf File-Format: application/pdf Classification-JEL:D43, H22, L13 Keywords:Imperfect Competition; Pass-through; Marginal Value of Public Funds; Incidence;Sufficient Statistics Handle: RePEc:kue:epaper:e-21-003 Template-Type: ReDIF-Paper 1.0 Title:Cournot Platform Competition with Mixed-Homing Author-Name:Mark J. TREMBLAY Author-Name-First:Mark J. Author-Name-Last:TREMBLAY Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Author-Name:Susumu SATO Author-Name-First:Susumu Author-Name-Last:SATO Abstract:Firms in traditional markets often compete in output `a la Cournot. In this paper, we consider Cournot platform competition in two-sided markets with single-, multi-, and mixed-homing allocations and find that the markup and markdown terms are distorted toward zero for (i) greater levels of platform competition and (ii) greater levels of singlehoming. Furthermore, we develop side specific conduct parameters that depend on the underlying platform conduct as well as the homing allocation; these effectively extend the monopoly platform Lerner indices from Armstrong (2006) and Weyl (2010) to the general case of platform competition. Finally, we show that, in utter contrast to the welfare results in traditional Cournot markets, greater Cournot platform competition often decreases welfare across all feasible homing allocations. Length:39 Creation-Date: 2021-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-004.pdf File-Format: application/pdf Classification-JEL:D40, L10, L20, L40. Keywords:Two-sided markets, conduct parameter, network externality, Lerner index,single-homing, multi-homing, mixed-homing. Handle: RePEc:kue:epaper:e-21-004 Template-Type: ReDIF-Paper 1.0 Title:A Sufficient Statistics Approach for Welfare Analysis of Oligopolistic Third-Degree Price Discrimination Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Author-Name:Michal FABINGER Author-Name-First:Michal Author-Name-Last:FABINGER Abstract:This paper proposes a sufficient statistics approach to welfare analysis of third-degree price discrimination in differentiated oligopoly. Specifically, our sufficient conditions for price discrimination to increase or decrease aggregate output, social welfare, and con-sumer surplus simply entail a cross-market comparison of multiplications of two or three of the sufficient statistics—pass-through, conduct, and profit margin—that are functions of first-order and second-order elasticities of the firm’s demand. Notably, these results are derived under a general class of demand, and can be readily be extended to accom-modate heterogeneous firms. These features suggest that our approach has potential for conducting welfare analysis without a full specification of an oligopoly model. Length:64 Creation-Date: 2021-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-005.pdf File-Format: application/pdf Classification-JEL:D43; L11; L13 Keywords:Third-Degree Price Discrimination; Oligopoly; Sufficient Statistics. Handle: RePEc:kue:epaper:e-21-005 Template-Type: ReDIF-Paper 1.0 Title:Crowding in School Choice Author-Name:William PHAN Author-Name-First:William Author-Name-Last:PHAN Author-Name:Ryan TIERNEY Author-Name-First:Ryan Author-Name-Last:TIERNEY Author-Name:Yu ZHOU Author-Name-First:Yu Author-Name-Last:ZHOU Abstract:We consider the problem of matching students to schools when students are able to express preferences over crowding. For example, schools have varying per capita expenditures, average teacherstudent ratios, etc. These characteristics of a school are now endogenously determined—matchings with more students to a particular school decrease each of the variables above. We propose a new equilibrium notion, the Rationing Crowding Equilibrium (RCE), that accommodates crowding, noenvy, and respect for priorities. We prove the existence of RCE under mild domain conditions, and establish a Rural Hospitals Theorem and welfare lattice result on the set of RCE. The latter implies the existence of a maximal RCE, and that such RCE are studentoptimal. Moreover, the mechanism defined by selection from the maximal RCE correspondence is strategyproof. We also identify an algorithm to find a maximal RCE for a natural subdomain. Length:46 Creation-Date: 2021-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-006.pdf File-Format: application/pdf Classification-JEL:C78, D47, D62, I20 Keywords:School choice with crowding; Rationing crowding equilibrium; Student optimality;Strategyproofness Handle: RePEc:kue:epaper:e-21-006 Template-Type: ReDIF-Paper 1.0 Title:Transportation Time and Freight Cost Author-Name:Yoko KONISHI Author-Name-First:Yoko Author-Name-Last:KONISHI Author-Name:Se-il MUN Author-Name-First:Se-il Author-Name-Last:MUN Author-Name:Yoshihiko NISHIYAMA Author-Name-First:Yoshihiko Author-Name-Last:NISHIYAMA Author-Name:Masahiro KINOMURA Author-Name-First:Masahiro Author-Name-Last:KINOMURA Abstract:This paper develops a model of freight transportation market, in which transportation time is endogenously determined in the market. Two types of transportation contract are considered: delivery with and without time designation. Theoretical analysis suggests that, in the presence of the uncertainty in transportation time, shippers choosing the time designation spend longer time for delivering cargos. We estimate the freight charge function, expressway choice model, and transportation time function, using microdata of freight flow in Japan. Based on the estimated freight charge function, we confirm the theoretical predictions. We also obtain the values of willingness to pay for time designation, as an alternative measure to evaluate the reliability value of transportation. Length:47 Creation-Date: 2021-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-007.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-21-007 Template-Type: ReDIF-Paper 1.0 Title:When can we design efficient and strategy-proof rules in package assignment problems? Author-Name:Tomoya KAZUMURA Author-Name-First:Tomoya Author-Name-Last:KAZUMURA Abstract:We examine the compatibility of efficiency and strategy-proofness in a package assignment model where preferences may not be quasi-linear. Given r 2 R, a preference relation is r-partially quasi-linear if it is quasi-linear over the set of (consumption) bundles where each bundle is at least as desirable as receiving no object and paying r, and the payment at each bundle is at least r. We show that if a domain includes r-partially quasi-linear domain, then no rule is efficient and strategy-proof. We also show that if there is a rule that satisfies efficiency, strategy-proofness, individual rationality, and no subsidy for losers on a domain, the domain must be a subset of the (0-)partially quasi-linear domain. Our results demonstrate that the quasi-linearity of preferences plays an important role to design an efficient and strategy-proof rule. Length:82 Creation-Date: 2020-01 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-008.pdf File-Format: application/pdf Classification-JEL:D44, D71, D61, D82. Keywords:Strategy-proofness, efficiency, non-quasi-linear preferences, par-tially quasi-linear preferences, generalized Vickrey rule, maximal domain Handle: RePEc:kue:epaper:e-21-008 Template-Type: ReDIF-Paper 1.0 Title:Platform Oligopoly with Endogenous Homing: Implications for Mergers and Free Entry Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Author-Name:Susumu SATO Author-Name-First:Susumu Author-Name-Last:SATO Author-Name:Mark J. TREMBLAY Author-Name-First:Mark J. Author-Name-Last:TREMBLAY Abstract:Consumer multi-homing is considered to be critical for competition policy regarding digital platforms. To assess the role of consumer multi-homing in competition policy, we embed consumer multi-homing into a model of oligopolistic competition between two-sided platforms and apply it to mergers and free entry. We find that a required level of merger-specific cost reduction is larger if consumers benefit more from multi-homing and that the equilibrium level of platform entry can be insufficient in the presence of consumer multi-homing. We also show that reductions to sellers' benefit from multi- homing reduces entry (i.e., is an e ective barrier to entry). These results contrast the popular belief that multi-homing mitigates the need for stricter competition policy. Length:35 Creation-Date: 2022-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-009.pdf File-Format: application/pdf Classification-JEL:D40, L10, L20, L40. Keywords:Two-sided markets; Indict network externalities; Multi-homing; Platform entry; Platform mergers. Handle: RePEc:kue:epaper:e-21-009 Template-Type: ReDIF-Paper 1.0 Title:The Impact of Policy Uncertainty on Foreign Direct Investment: Micro-Evidence from Japan's International Investment Agreements Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Mitsuo INADA Author-Name-First:Mitsuo Author-Name-Last:INADA Abstract:This study proposes an empirical strategy to identify the impact of policy uncertainty (PU) at the host economy-sector level on foreign direct investment (FDI) by exploiting the plausibly exogenous exemptions from certain obligations such as national treatment (NT) and the most favored nation (MFN) in international investment agreements (IIAs). To this end, the study evaluates how the activities of Japanese multinational enterprises (MNEs) and their foreign affiliates are affected by Japan’s 22 IIAs, including bilateral investment treaties and economic partnership agreements with investment provisions, over 1995–2016 at the microdata level. Our empirical strategy relies on differences in the PU changes that MNEs and their foreign affiliates face after an IIA enters into force, depending on whether the relevant sectors are exempted from NT and MFN in the IIA. We find that the PU regarding the MFN has a stronger effect on FDI than the PU regarding NT. In particular, the former PU discourages the establishment of new foreign affiliates and also reduces the capital investment by an affiliate. However, PU does not necessarily induce the exit of affiliates from the market. Length:32 Creation-Date: 2022-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-21-010.pdf File-Format: application/pdf Classification-JEL:F15; F21; F23. Keywords:policy uncertainty; international investment agreements; negative lists; foreign direct investment. Handle: RePEc:kue:epaper:e-21-010 Template-Type: ReDIF-Paper 1.0 Title:Do Deep Regional Trade Agreements Facilitate International Research Collaboration? Author-Name:Naoto JINJI Author-Name-First:Naoto Author-Name-Last:JINJI Author-Name:Xingyuan ZHANG Author-Name-First:Xingyuan Author-Name-Last:ZHANG Author-Name:Shoji HARUNA Author-Name-First:Shoji Author-Name-Last:HARUNA Abstract:We examine whether regional trade agreements (RTAs) facilitate international research collaboration. First, using a two-country model of a continuum of oligopolitic industries with process research and development (R&D) investment and spillovers, we analyze whether trade liberalization through a trade agreement with deep economic integration increases the number of firms that engage in research collaboration. We then empirically investigate the effects of deep RTAs by employing data on patents with multiple inventors from different countries at the United States Patent and Trademark Office (USPTO) for 114 countries/regions over the period 1990–2011. We interpret co-inventions by inventors residing in different countries as evidence of international research collaboration. We use dummy variables and indexes to measure the extent of economic integration by RTAs. We find that deeper integration is associated with more active international co-inventions. We check the robustness of our findings by employing various specifications and addressing endogeneity issues. Length:37 Creation-Date: 2022-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-001.pdf File-Format: application/pdf Classification-JEL:L13; O31; O33; F15. Keywords:Research collaboration; international co-invention; regional trade agreement; deep integration. Handle: RePEc:kue:epaper:e-22-001 Template-Type: ReDIF-Paper 1.0 Title:The development and reconceptualization of entrepreneurial resilience Author-Name:Satoshi KAWAKATSU Author-Name-First:Satoshi Author-Name-Last:KAWAKATSU Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:The current entrepreneurial resilience research is a mixed bag—ranging from simply applying the construct of psychological resilience to entrepreneurs to focusing on the entrepreneur-specific aspect of resilience. This highlights three issues. First, the difference between psychological resilience and entrepreneurial resilience is not yet clear. Second, as observed in several previous studies, this ambiguity leads to the fallacy of directly correlating individual psychological resilience to business performance. Third, the extent to which entrepreneurial resilience as a trait affects firm performance remains unclear. These issues blur the essence of why resilience is important for entrepreneurial activity. To advance the literature, this article reconceptualizes entrepreneurial resilience as consisting of four elements: traits, processes, outcomes, and external factors, and argues that entrepreneurial resilience research should include and analyze all these elements. We also propose a methodology based on the reconceptualization, which paves the way for finding the significance of entrepreneurial resilience research. Length:31 Creation-Date: 2022-07 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-002.pdf File-Format: application/pdf Classification-JEL: Keywords:resilience, entrepreneurial resilience, four factors of resilience, multi-level approach Handle: RePEc:kue:epaper:e-22-002 Template-Type: ReDIF-Paper 1.0 Title:Do No-Surcharge Rules Increase Effective Retail Prices? Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Author-Name:Mark J. TREMBLAY Author-Name-First:Mark Author-Name-Last:J. TREMBLAY Abstract:In this paper, we determine how a no-surcharge rule (NSR) impacts effective prices in retail markets (prices that include any consumer payment rewards). This question is fundamentally related to policy, and we provide robust answers by considering how a variety of market structures are impacted by multiple payment methods and different surcharging rules. We find that when a no-surcharge rule is applied, effective prices in a particular market are often higher across all payment methods. In this case, the no-surcharge rule protects a double marginalization effect where the premium payment method inserts an additional margin that harms all consumers and all merchants, and this loss in welfare can be rectified by allowing merchant surcharging across payment methods. Our results are robust across retail market structures, suggesting that NSRs are generally harmful (except for the payment companies). Length:30 Creation-Date: 2022-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-003.pdf File-Format: application/pdf Classification-JEL:L10, L20, L42 Keywords:Credit cards, merchant fees, consumer rewards, Ohio v.s. American Express Handle: RePEc:kue:epaper:e-22-003 Template-Type: ReDIF-Paper 1.0 Title:Bayesian Probability Revision and Infection Prevention Behavior in Japan : A Quantitative Analysis of the First Wave of COVID-19 Author-Name:Shin KINOSHITA Author-Name-First:Shin Author-Name-Last:KINOSHITA Author-Name:Masayuki SATO Author-Name-First:Masayuki Author-Name-Last:SATO Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:The relationship between cognitive biases and infection prevention behavior remains unexplored in the existing literature. This study uses data from a questionnaire survey conducted in Japan regarding the first wave of coronavirus disease 2019 (COVID-19) from February to May 2020 to investigate the impact of Bayesian probability inference, impact of cognitive biases of PCR test results on infection prevention behavior, and the discrepancy between infection prevention intentions and behaviors. The results showed that the higher probability responses, implying pessimism biases, were more likely to indicate that declaring a state of emergency was necessary and effective, and that they were more health oriented to ensure infection prevention behavior even at the expense of the economy. However, regarding actual behavioral change, it was found that even though they really wanted to reduce the frequency of their outings and the number of people they came in contact with, they actually did not reduce it. It was also found that those affected by pessimism biases showed higher WTP for the vaccine. Length:56 Creation-Date: 2022-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-004.pdf File-Format: application/pdf Classification-JEL:I1, D9, C3 Keywords:COVID-19, Bayesian inference, cognitive biases Handle: RePEc:kue:epaper:e-22-004 Template-Type: ReDIF-Paper 1.0 Title:TRACT HOUSING, THE CORE, AND PENDULUM AUCTIONS Author-Name:Andrew MACKENZIE Author-Name-First:Andrew Author-Name-Last:MACKENZIE Author-Name:Yu ZHOU Author-Name-First:Yu Author-Name-Last:ZHOU Abstract:We consider a model of tract housing where buyers and sellers have (i) wealth constraints, and (ii) unit demand over identical indivisible objects represented by a valuation. First, we characterize the strong core. Second, we characterize the bilat- eral weak core, or the weak core allocations with no side-payments. Finally, when buyer wealth constraints and valuations are private information and when trans- fers are discrete, we introduce two families of pendulum auctions, both of which consist of obviously strategy-proof selections of the bilateral weak core. The buyer- optimal pendulum auctions are preferred by the buyers but are inefficient when side-payments are possible, while the efficient pendulum auctions are efficient Length:55 Creation-Date: 2022-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-005.pdf File-Format: application/pdf Classification-JEL:C72, D41, D47, D82 Keywords:tract housing, core, pendulum auction, almost-synchronized equilibrium, private wealth constraints, efficiency, obvious strategy-proofness Handle: RePEc:kue:epaper:e-22-005 Template-Type: ReDIF-Paper 1.0 Title:Recent Advances in the Theory of Third-Degree Price Discrimination: A Brief Survey Author-Name:Takanori ADACHI Author-Name-First:Takanori Author-Name-Last:ADACHI Abstract:This survey provides a selected review of the recent progress in the theory of third-degree price discrimination. First, I focus on two well-known results in the literature: (i) an increase in aggregate output is necessary for price discrimination to increase social welfare, and (ii) price discrimination leads to a Pareto welfare improvement if one of the two markets is not served under uniform pricing. I argue when these results hold and when they fail to hold. Second, I consider oligopolistic competition and stress that there is no great divide between monopoly and oligopoly because both situations can be treated systematically in terms of an index that governs the intensity of competition. Length:24 Creation-Date: 2022-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-006.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-22-006 Template-Type: ReDIF-Paper 1.0 Title:Territorial Tax Reform and Profit Shifting by US and Japanese Multinationals Author-Name:Makoto HASEGAWA Author-Name-First:Makoto Author-Name-Last:HASEGAWA Abstract:In 2009, Japan adopted a territorial tax regime by exempting dividends paid by Japanese-owned foreign subsidiaries to their parent firms from home-country taxation. This paper examines the impact of this tax reform on profit shifting by Japanese multi- nationals. I find that the semi-elasticity of pre-tax profits with respect to host-country corporate tax rates for Japanese-owned foreign subsidiaries, particularly large sub- sidiaries, sharply increased after the 2008 announcement of the implementation of the territorial tax regime, relative to that for US-owned foreign subsidiaries. This suggests that the territorial tax reform encouraged profit shifting by Japanese multinationals that owned large foreign subsidiaries. Length:63 Creation-Date: 2022-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-007.pdf File-Format: application/pdf Classification-JEL:H25; H26; F23 Keywords:International taxation; Multinational corporations; Profit shifting; World-wide tax system; Territorial tax system Handle: RePEc:kue:epaper:e-22-007 Template-Type: ReDIF-Paper 1.0 Title:Recognition versus Disclosure and Managerial Discretion: Evidence from Japanese Pension Accounting Author-Name:Masaki KUSANO Author-Name-First:Masaki Author-Name-Last:KUSANO Abstract: In Japan, the current pension accounting standard requires firms to recognize pension items— prior service costs and actuarial gains and losses—in consolidated financial statements; however, firms are still allowed to disclose them in the notes when preparing unconsolidated financial statements. Employing this unique pension accounting rule, I explore whether and how disclosed versus recognized pension liabilities influence managerial discretion regarding pension assumptions. Recognition firms, those that recognize the previously disclosed pension items on the balance sheet, choose higher discount rates than disclosure firms, those that still disclose them in their notes. In particular, in case of more debt- contracting incentives, recognition firms are more likely to exercise their discretion over discount rates than disclosure firms. Overall, my results suggest that firms underestimate pension liabilities by using pension assumptions when pension recognition rules are mandated. Length:46 Creation-Date: 2022-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-008.pdf File-Format: application/pdf Classification-JEL:M41, M48 Keywords:Recognition versus Disclosure, Managerial Discretion, Pension Accounting, Discount Rate Handle: RePEc:kue:epaper:e-22-008 Template-Type: ReDIF-Paper 1.0 Title:A Continuous-Time Utility Maximization Problem with Borrowing Constraints in Macroeconomic Heterogeneous Agent Models:A Case of Regular Controls under Markov Chain Uncertainty Author-Name:Yuki SHIGETA Author-Name-First:Yuki Author-Name-Last:SHIGETA Abstract:This paper is concerned with the verification of a continuous-time utility max- imization problem frequently used in recent macroeconomics. By focusing on Markov chain uncertainty, the problem in this paper can feature many charac- teristics of a typical consumer’s problem in macroeconomics, such as borrowing constraints, endogenous labor supply, unhedgeable labor income, multiple asset choice, stochastic changes in preference, and others. I show that the value func- tion of the problem is actually a constrained viscosity solution to the associated Hamilton–Jacobi–Bellman equation. Furthermore, the value function is continu- ously differentiable in the interior of its domain. Finally, the candidate optimal control is admissible, unique, and actually optimal. Length:63 Creation-Date: 2022-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-009.pdf File-Format: application/pdf Classification-JEL:C61, E21, G11 Keywords:Continuous-Time Utility Maximization, Borrowing Constraints, Hamilton–Jacobi–Bellman Equation, Viscosity Solution Handle: RePEc:kue:epaper:e-22-009 Template-Type: ReDIF-Paper 1.0 Title:Existence of Invariant Measure and Stationary Equilibrium in aContinuous-Time One-Asset Aiyagari Model:A Case of Regular Controls under Markov Chain Uncertainty Author-Name:Yuki SHIGETA Author-Name-First:Yuki Author-Name-Last:SHIGETA Abstract:This paper is concerned with the existence of the invariant measure and stationary equilibrium in a continuous-time Aiyagari model with an endogenous labor supply. First, I demonstrate that the value function, optimal consumption, optimal labor supply, optimal saving rate, and optimally controlled liquid asset process are jointly continuous in parameters such as the interest rate and wage. Second, I show the existence of the ergodic invariant measure of the optimally controlled liquid asset process. Finally, I demonstrate the existence of the stationary equilibrium in a continuous-time one-asset Aiyagari model. Length:63 Creation-Date: 2022-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-010.pdf File-Format: application/pdf Classification-JEL:C62, E21, G11 Keywords:Macroeconomic Mean Field Game, Borrowing Constraint, Hamilton–Jacobi–Bellman Equation, Viscosity Solution, Continuity in Parameters, Existence of Invariant Measure Handle: RePEc:kue:epaper:e-22-010 Template-Type: ReDIF-Paper 1.0 Title:Subjective Risk Valuation and Behavioral Change : Evidence from COVID-19 in the U.K. and Japan Author-Name:Masayuki SATO Author-Name-First:Masayuki Author-Name-Last:SATO Author-Name:Shin KINOSHITA Author-Name-First:Shin Author-Name-Last:KINOSHITA Author-Name:Takanori IDA Author-Name-First:Takanori Author-Name-Last:IDA Abstract:This study analyzed people's behavioral changes in the early stages of COVID-19 expansion in relation to subjective probability, and clarified the effect of risk perception on behavioral changes, such as outbound restriction. We conducted a social survey using an Internet survey in the U.K. and Japan in the fall of 2020 and found that the percentage of those who evaluated risk optimistically was higher in the U.K. than in Japan. In addition, we applied seemingly unrelated regression (SUR) for the bivariate ordinal probit model to the association between desired and actual infection prevention behavior and found that a pessimistic bias is likely to lead to behavioral change, whereas an optimistic one is not. These results suggest that when pessimistic bias is strong, measures that respect people’s rights, such as freedom of action, while leaving people to be autonomous, can be effective to some extent. In contrast, when optimistic bias is strong, the use of a certain degree of coercive force may be unavoidable from the standpoint of public interest. Length:43 Creation-Date: 2022-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-011.pdf File-Format: application/pdf Classification-JEL: Keywords:COVID-19, Bayesian Inference, Subjective probability, Seemingly Unrelated Regression Handle: RePEc:kue:epaper:e-22-011 Template-Type: ReDIF-Paper 1.0 Title:A Factor Pricing Model under Ambiguity:A Multi-Period Framework Author-Name:Katsutoshi WAKAI Author-Name-First:Katsutoshi Author-Name-Last:WAKAI Abstract:This paper is a multi-period extension of the factor pricing model under ambiguity as developed by Wakai (2018). Length:17 Creation-Date: 2023-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-012.pdf File-Format: application/pdf Classification-JEL: D81, G11, G12 Keywords:Ambiguity aversion, asset pricing, factor pricing Handle: RePEc:kue:epaper:e-22-012 Template-Type: ReDIF-Paper 1.0 Title:At the Right Time:Eliminating Mismatch between Cash Flow and Credit Flow in Microcredit Author-Name:Hisaki KONO Author-Name-First:Hisaki Author-Name-Last:KONO Author-Name:Abu SHONCHOY Author-Name-First:Abu Author-Name-Last:SHONCHOY Author-Name:Kazushi TAKAHASHI Author-Name-First:Kazushi Author-Name-Last:TAKAHASHI Abstract:Despite the expansion of microcredit access, its outreach is still limited among farmers. One potential cause is a timing mismatch between cash flow and credit flow. Farmers have little income until their harvest is realized, while standard microcredit requires weekly installment payments. This mismatch causes underinvestment and borrowing for repayment, resulting in lower uptake rates. Furthermore, agricultural investment is sequential, while credit is disbursed as a lump sum. Present-biased (PB) farmers may fail to set aside sufficient money for later investment. To test these predictions, we conducted a randomized control trial modifying standard microcredit targeted at tenant farmers by setting repayment schedules to one-time repayment after harvest and making loan disbursement sequential. Discarding weekly repayment increased uptake and borrower’s satisfaction without worsening repayment rates. Sequential disbursement increased later investments among PB borrowers and reduced loan sizes. We attribute the loan size reduction to the option value: Sequential disbursement allowed borrowers to adjust the total loan size after observing credit demand shocks, eliminating the need for precautionary borrowing. Calibrated models are used to evaluate counterfactual credit designs, showing that letting borrowers set the credit limit is beneficial for PB borrowers, while credit lines will be suboptimal for PB borrowers. Length:92 Creation-Date: 2023-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-22-013.pdf File-Format: application/pdf Classification-JEL:G21, O16, Q14 Keywords:Microcredit; Timing mismatch, Commitment; Option value; Precautionary borrowing Handle: RePEc:kue:epaper:e-22-013 Template-Type: ReDIF-Paper 1.0 Title:At the Right Time:Eliminating Mismatch between Cash Flow and Credit Flow in Microcredit Author-Name:Sachiko HATA Author-Name-First:Sachiko Author-Name-Last:HATA Author-Name:Yasuo SUGIYAMA Author-Name-First:Yasuo Author-Name-Last:SUGIYAMA Abstract:This research explores how entrepreneurs deploy defense mechanisms when facing the potential misappropriation of their own resources by established corporate partner “sharks.” The prior literature has examined legal and timing defenses, along with social defenses that utilize the network structure of investment relationships with power imbalances between young firms and large firms. By conducting qualitative analysis based on 41 semi-structured interviews with entrepreneurs' firms, broader and more detailed defense strategies were identified, including seven (invisible) defense mechanisms, such as “balanced coopetition,” “eliminate information asymmetry,” “agile implementation of ideas,” which were not immediately identifiable as defense mechanisms." Length:44 Creation-Date: 2023-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-001.pdf File-Format: application/pdf Classification-JEL:M10, M13, M21 Keywords:Microcredit; Open Innovation, Startup, Entrepreneurs, Qualitative research, Defense mechanism Handle: RePEc:kue:epaper:e-23-001 Template-Type: ReDIF-Paper 1.0 Title:At the Right Time:Ramsey-Cass-Koopmans Model with Declining Population Author-Name:Ichiroh DAITOH Author-Name-First:Ichiroh Author-Name-Last:DAITOH Author-Name:Hiroaki SASAKI Author-Name-First:Hiroaki Author-Name-Last:SASAKI Abstract:This paper investigates how population decline may affect the optimal path in two types of Ramsey-Cass- Koopmans (RCK) model with child rearing costs. An optimal path exists in both models under economically plausible conditions and a new type of optimal path exists in the model where the discount rate is only the time preference rate. Under population decline, the existence and properties of an optimal path depend on the range of the rates of population change, regardless of the child rearing costs. First, when population decline is mild, the optimal path is a saddle-point path converging to a finite steady state, as in the standard RCK model with increasing population. Second, when population decline is faster, the optimal path is a saddle-point path converging, by reversible investment, to a finite steady state (i.e., a balanced growth path (BGP)), at which per capita consumption is larger than per capita income. Third, when population decline is even faster, the optimal path can be an asymptotically BGP, along which both per capita consumption and income keep increasing permanently. We show empirical relevance of these optimal paths by Japanese data and World Population Prospects 2019. Length:52 Creation-Date: 2023-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-002.pdf File-Format: application/pdf Classification-JEL:E21; J11; O11; O41 Keywords:Microcredit; Population decline; dynamic optimization; long-run per capita growth; child rearing cost Handle: RePEc:kue:epaper:e-23-002 Template-Type: ReDIF-Paper 1.0 Title:The Effects of Mass Transit System on Urban Population Distribution:Evidence from Wuhan Author-Name:Se-il MUN Author-Name-First:Se-il Author-Name-Last:MUN Author-Name:Lei QIN Author-Name-First:Lei Author-Name-Last:QIN Author-Name:Yue ZHOU Author-Name-First:Yue Author-Name-Last:ZHOU Abstract:This paper aims to evaluate empirically how station spacing affects the density along the transit line and the compactness of the urban area. We derive the population density equation as a function of station spacing, based on urban economics model of residential land use. We estimate the population density equation using data for grids in Wuhan, China. Based on the estimated equation, we conduct counterfactual simulations for several cases of station spacing to evaluate the extent to which shorter station spacing contributes to land use compactness. Length:45 Creation-Date: 2023-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-003.pdf File-Format: application/pdf Classification-JEL:R14; R21; R31; R42 Keywords:Microcredit; Mass Transit System; Compact land use; Station spacing; Population distribution Handle: RePEc:kue:epaper:e-23-003 Template-Type: ReDIF-Paper 1.0 Title:Career agency and person-environment fit:A study on female globally mobile employees in Japan Author-Name:Jiayin QIN Author-Name-First:Jiayin Author-Name-Last:QIN Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:This study aims to understand how female globally mobile employees (GMEs), a group that is gaining a stronger presence in global work, exert their career agency within the context of structural constraints. Using theoretical perspectives of career-agency theory and person-environment fit as frames of reference, we collected 113 blog posts written by nineteen female GMEs and conducted semi-structured interviews with eleven female GMEs who are currently living and working in Japan. We found that our informants exercised career agency as a response to foreignness and gender related challenges. Through career-related agentic behaviors, our informants strove to increase their fit with their environments and to build career capital while interacting with different aspects of structural constraints. We also found people in different stages of global mobility exhibited different mindsets towards their foreignness, consequently influencing their career agency. This study presents a theoretical framework that highlights the dynamic interaction between structural constraints and the agency of female GMEs, advancing our understanding of career agency in women’s global work. Additionally, it recognizes the presence of expatriate residents as a distinct subgroup within female GME population, shedding light on the evolving ambiguous boundaries between SIEs and other related categories. Length:49 Creation-Date: 2023-10 File-URL: File-Format: application/pdf Classification-JEL: Keywords:globally mobile employees, self-initiated expatriates, expatriate residents, career agency, person-environment fit, gender, Japan Handle: RePEc:kue:epaper:e-23-004 Template-Type: ReDIF-Paper 1.0 Title:Variety of Cyber Democracy from the Asian View of Human Being Author-Name:Takeshi SAKADE Author-Name-First:Takeshi Author-Name-Last:SAKADE Abstract:This paper highlights the current threats to civil liberties such as freedom of expression, association, peaceful assembly, and privacy, which include private corporations, government censorship, cyberattacks, fake news, and privacy breaches. The paper examines the crisis of social and political openness in the online space that citizens and internet companies should enjoy, and the need for multi-stakeholders to realize this. Actor-network theory, based on Bruno Latour’s ANT, discusses the nature of democracy in online space in societies with Confucian cultural principles that differ from Western cultural principles. Multi-stakeholderism is a framework that involves organizations and individuals from different positions in society, such as businesses, consumers, investors, workers, and NPOs, who participate in the multi-stakeholder process, cooperate, and play their respective roles. The organizations and individuals that hold the key to solving these problems are called “stakeholders”. A “multi-stakeholder process” is a consensus-building framework in which a wide variety of stakeholders participate on an equal footing and work together to solve problems. Length:30 Creation-Date: 2023-11 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-005.pdf File-Format: application/pdf Classification-JEL:N40, N45 Keywords:Microcredit;Agile Governance, Confucianism, Multi-stakeholdrism Handle: RePEc:kue:epaper:e-23-005 Template-Type: ReDIF-Paper 1.0 Title:Does excess employment affect the relative performance evaluation usage in CEO turnover?Evidence from Chinese listed firms Author-Name:Xinyi CAO Author-Name-First:Xinyi Author-Name-Last:CAO Author-Name:Norio SAWABE Author-Name-First:Norio Author-Name-Last:SAWABE Abstract:This study investigates the application of Relative Performance Evaluation (RPE) theory on forced CEO turnover decisions in the context of Chinese listed firms. Using CEO dismissal data spanning from 2009 to 2019, we observe a negative correlation between industry peer performance and the likelihood of forced CEO turnover, which contradicts the assumption of RPE theory. Furthermore, we emphasize the significance of considering Non-Financial Performance Measures (NFPMs) in CEO turnover research. Our research reveals that the extent of excess employment is negatively associated with the probability of forced CEO dismissal, and it also affects how a firm responds to peer performance. Specifically, when firms exhibit high social performance, proxied by excess employment, they tend not to lay off more CEOs due to industry downturns. This study offers a potential explanation for Jenter and Kanaan (2015)’s puzzle of why firms terminate more CEOs when their industry experiences a recession. We argue that prior literature, which predominantly focuses on the relationship between financial performance and CEO turnover, may be incomplete. It is imperative to also account for the impact of NFPMs. Length:37 Creation-Date: 2023-12 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-006.pdf File-Format: application/pdf Classification-JEL:G32, M21, M41 Keywords:Consistency, Relative performance evaluation, excess employment, forced CEO turnover, Chinese listed firms Handle: RePEc:kue:epaper:e-23-006 Template-Type: ReDIF-Paper 1.0 Title:Sequential dictatorship rules in multi-unit objectassignment problems with money Author-Name:Masahiro KAWASAKI Author-Name-First:Masahiro Author-Name-Last:KAWASAKI Author-Name:Ryosuke SAKAI Author-Name-First:Ryosuke Author-Name-Last:SAKAI Author-Name:Tomoya KAZUMURA Author-Name-First:Tomoya Author-Name-Last:KAZUMURA Abstract:We study consistency in multi-unit object allocation problems with money. Objects are identical and each agent has a multi-demand and quasi-linear preferences. We consider the class of weak object monotonic preferences and that of single-peaked preferences. We first show that on those domains, if a rule satisfies consistency, strategyproofness, individual rationality, no subsidy, non-wasteful tie-breaking, and minimal tradability, then it is a sequential dictatorship rule. Since not all sequential dictatorship rule are strategy-proof and consistent, we then focus on a specific class of sequential dictatorship rules which we call sequential dictatorship rules with lowest tie-breaking. On the weakly object monotonic domain, when the reservation prices are increasing in the number of objects, sequential dictatorship rules with lowest tie-breaking satisfy consistency and independence of unallocated objects if and only if there is a common priority ordering for more than one object and this is an acyclic ordering of the priority ordering for one object. We also show that this condition is a necessary and sufficient condition for a sequential dictatorship rule with lowest tie-breaking to satisfy consistency and independence of unallocated objects on the single-peaked domain. Length:38 Creation-Date: 2023-12 File-URL: File-Format: application/pdf Classification-JEL:D44, D71, D61, D82. Keywords:Consistency, Strategy-proofness, sequential dictatorship rule, serial dictatorship rule, weakly object monotonic preferences, single-peaked preferences, acyclicity. Handle: RePEc:kue:epaper:e-23-007 Template-Type: ReDIF-Paper 1.0 Title:Revisiting National Institutions and Subnational Development in Africa with New Nighttime Light Data Author-Name:Soyoka OKAMURA Author-Name-First:Soyoka Author-Name-Last:OKAMURA Author-Name:Yotaro UENO Author-Name-First:Yotaro Author-Name-Last:UENO Author-Name:Toma YAMAGOSHI Author-Name-First:Toma Author-Name-Last:YAMAGOSHI Author-Name:Hisaki KONO Author-Name-First:Hisaki Author-Name-Last:KONO Abstract:We revisit the empirical investigation of the importance of national institutions for sub-regional economic development using more accurate nighttime light data. In contrast to the original study by Michalopoulos and Papaioannou (2014), we find that national institutions matter even after controlling for ethnic-homeland fixed effects, and even in areas far from the capital. This suggests that the spatial imprecision and blurring of nighttime light data attenuated the association between national institutions and economic activity in their analysis. Nevertheless, our analyses generally corroborate their argument, particularly regarding the role of the limited penetration of national institutions in African countries. Length:42 Creation-Date: 2024-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-008.pdf File-Format: application/pdf Classification-JEL:O10, O43, N17, R12. Keywords:Consistency, Nighttime lights, DMSP, VIIRS, national institutions. Handle: RePEc:kue:epaper:e-23-008 Template-Type: ReDIF-Paper 1.0 Title:Nudging by Beauty:Improving Women's Health Decisions and Well-Being in the Field Author-Name:Hisaki KONO Author-Name-First:Hisaki Author-Name-Last:KONO Author-Name:Minhaj MAHMUD Author-Name-First:Minhaj Author-Name-Last:MAHMUD Author-Name:Yasuyuki SAWADA Author-Name-First:Yasuyuki Author-Name-Last:SAWADA Author-Name:Nahoko MITSUYAMA Author-Name-First:Nahoko Author-Name-Last:MITSUYAMA Author-Name:Tomomi TANAKA Author-Name-First:Tomomi Author-Name-Last:TANAKA Abstract:Health interventions often fail to influence behavior because they overlook the choice architecture. We assess a unique intervention targeting women in rural Bangladesh, which emphasized health, hygiene, and nutrition’s role in skin beauty. This intervention aimed to attract the attention of women, who tend to be beauty-conscious. Using the high-dimensional covariate balancing propensity score method, we find significant impacts on beauty, health outcomes, social relationships, and subjective well-being. Our analysis suggests the intervention’s effectiveness is unlikely due to omitted variable bias. Using meta-analysis, we highlight its effectiveness in leveraging beauty salience compared with existing health and hygiene programs. Length:54 Creation-Date: 2024-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-009.pdf File-Format: application/pdf Classification-JEL:I1, D9 Keywords:Hygiene, Health, Beauty. Handle: RePEc:kue:epaper:e-23-009 Template-Type: ReDIF-Paper 1.0 Title:Sequential dictatorship rules in multi-unit object assignment problems with money Author-Name:Masahiro KAWASAKI Author-Name-First:Masahiro Author-Name-Last:KAWASAKI Author-Name:Ryosuke SAKAI Author-Name-First:Ryosuke Author-Name-Last:SAKAI Author-Name:Tomoya KAZUMURA Author-Name-First:Tomoya Author-Name-Last:KAZUMURA Abstract:We study consistency in multi-unit object allocation problems with money. Objects are identical and each agent has a multi-demand and quasi-linear preferences. We consider the class of weak object monotonic preferences and that of single-peaked preferences. We first show that on those domains, if a rule satisfies consistency, strategyproofness, individual rationality, no subsidy, non-wasteful tie-breaking, and minimal tradability, then it is a sequential dictatorship rule. Since not all sequential dictatorship rule are strategy-proof and consistent, we then focus on a specific class of sequential dictatorship rules which we call sequential dictatorship rules with lowest tie-breaking. On the weakly object monotonic domain, when the reservation prices are increasing in the number of objects, sequential dictatorship rules with lowest tie-breaking satisfy consistency and independence of unallocated objects if and only if there is a common priority ordering for more than one object and this is an acyclic ordering of the priority ordering for one object. We also show that this condition is a necessary and sufficient condition for a sequential dictatorship rule with lowest tie-breaking to satisfy consistency and independence of unallocated objects on the single-peaked domain. Length:37 Creation-Date: 2024-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-23-007-V2.pdf File-Format: application/pdf Classification-JEL:D44, D71, D61, D82. Keywords:Consistency, Strategy-proofness, sequential dictatorship rule, serial dictatorship rule, weakly object monotonic preferences, single-peaked preferences, acyclicity. Handle: RePEc:kue:epaper:e-23-007-V2 Template-Type: ReDIF-Paper 1.0 Title:Fertility Policy and Gender Discrimination in the Workplace:Evidence from the Two-Child Policy Reform in China Author-Name:Yijun YU Author-Name-First:Yijun Author-Name-Last:YU Author-Name:Hisaki KONO Author-Name-First:Hisaki Author-Name-Last:KONO Abstract:Since 2013, China’s Two-Child Policy has significantly r eformed t he O ne-Child Policy, permitting the birth of a second child. This paper explores how this policy revision affects female labor participation in China, arguing that the policy negatively impacts women’s workforce involvement resulting from statistical discrimination. We employ the China Family Panel Studies data and a difference-in-difference mo del to in vestigate di fferences bet ween wom en wit h one child and women with two children in terms of employment status, job stability, and promotion. The findings i ndicate t hat t he p robability o f o btaining e mployment i n a w age-paying position is about 8% lower for women with one child compared to women with two children. Additionally, one-child women are around 11% more likely to experience unemployment, suggesting the existence of demand-side discrimination. Our results are robust under an inverse propensity weighting approach that balances the characteristics between the treatment and control group, and Heckman’s two-step method that accounts for a selection bias. A sensitivity check considering the unobserved characteristics further validates our analysis. Length:34 Creation-Date: 2024-05 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-001.pdf File-Format: application/pdf Classification-JEL:D63, J13, J18, J71, J78. Keywords:family planning policy, two-child policy, women labor force participation, statistical discrimination Handle: RePEc:kue:epaper:e-24-001 Template-Type: ReDIF-Paper 1.0 Title:Do Municipal Mergers Promote Recycling? Author-Name:Jinsong LI Author-Name-First:Jinsong Author-Name-Last:LI Author-Name:Kenji TAKEUCHI Author-Name-First:Kenji Author-Name-Last:TAKEUCHI Abstract:This study investigates whether municipal mergers promote waste recycling and generate lower waste. Using difference-in-differences with matching, we estimate the effect of the large-scale consolidation in Japan on waste management, waste generation, and collection of recyclable plastics. We find merged municipalities are less likely to adopt unit pricing of household waste which might explain higher waste generation in the merged municipalities. Our results also show that the amount of recycled PET bottles is lower in the merged municipalities. These results suggest that municipal mergers indeed have an impact on municipal solid waste management but may not lead to more strict waste management and lower waste generation. Length:30 Creation-Date: 2024-06 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-002.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-24-002 Template-Type: ReDIF-Paper 1.0 Title:Decomposing Inclusive Growth: Application to Household Survey Data in Vietnam Author-Name:Hisaki KONO Author-Name-First:Hisaki Author-Name-Last:KONO Author-Name:Bich-Ngoc T. PHAM Author-Name-First:Bich_Ngoc Author-Name-Last:PHAM Abstract:Ray and Genicott (2023) proposed a new metric for upward mobility, which also captures the concept of inclusive growth. We proposed several decomposition analyses of this metric using household-level data, which can help identify the factors that contributed to the observed inclusive growth. We applied these methods to Vietnam, a country that experienced rapid and equitable economic growth. Our findings reveal that rural residents, who were initially left behind, experienced more inclusive growth than urban residents, contributing to overall national-level inclusive growth. The impact of household demographic factors such as education levels and job status was relatively minor in explaining inclusive growth in Vietnam. Instead, regional economic performance emerged as a key driver of inclusive growth. The limited impact of education improvement is likely because the poor tended to be low-educated elderly people who would not directly benefit from the improvement of education. These findings underscore the importance of economic growth and expansion of social security systems, such as old-age pension programs, to achieve inclusive growth. Length:47 Creation-Date: 2024-08 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-003.pdf File-Format: application/pdf Classification-JEL: Keywords:Intergenerational income mobility Handle: RePEc:kue:epaper:e-24-003 Template-Type: ReDIF-Paper 1.0 Title:Efficient and (or) fair allocations under market-clearing constraints Author-Name:Wataru ISHIDA Author-Name-First:Wataru Author-Name-Last:ISHIDA Author-Name:Yusuke IWASE Author-Name-First:Yusuke Author-Name-Last:IWASE Author-Name:Taro KUMANO Author-Name-First:Taro Author-Name-Last:KUMANO Abstract:Matching markets often encounter admissibility issues due to social concerns and regulations that must be respected. A key situation that has not been thoroughly analyzed in the literature involves the market-clearing requirement, which ensures balance in allocations across multiple matching markets, similar to supply-and-demand dynamics. To address these admissibility issues, we introduce the concept of an admissible set for such problems. We propose two solutions. The first solution is the "fairness-guaranteed stable solution." We identify a requirement on admissible sets that is necessary and sufficient for the non-emptiness of this solution. This requirement ensures that an allocation where no agent is assigned any resources is admissible. We then conduct welfare analysis and comparative statics of this solution. The second solution is called "efficiency-guaranteed stability," which focuses on maximizing efficiency within the constraints of the admissible set. We show that only specific admissible sets allow this solution to be non-empty. Length:49 Creation-Date: 2024-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-004.pdf File-Format: application/pdf Classification-JEL: Keywords:Efficiency, Fairness, Matching Handle: RePEc:kue:epaper:e-24-004 Template-Type: ReDIF-Paper 1.0 Title:Power-dependence in Regulated Social Enterprise: Evidence from Human Resource Management Practices at Continuous Employment Support Offices for People with Disabilities in Japan Author-Name:Bita PUSPITASARI Author-Name-First:Bita Author-Name-Last:PUSPITASARI Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:This study examines human resource management (HRM) practices in Continuous Employment Support Offices, Japan’s context of work integration social enterprise (WISE) which provides employment and training to people with disabilities (PwD). Investigation from an HRM perspective is relevant for the Offices' distinctive workforce while ensuring business profitability. Utilizing the constructivist grounded theory approach, interviews with 21 Offices across Japan were conducted. This study identifies key HRM practices: tasks/job design and assignment, sought specifications, recruitment, pay policy, and user mobility, which vary depending on the Office’s classification as either Type A (employment provider) or Type B (training provider) organization. This finding elucidates power dynamics between the Offices, the government, and PwD within the context of welfare service provision. Drawing from power-dependence relations, the subsequent analysis suggests the Office as a less powerful actor within the dyadic relations between the government and PwD. Offices employ a balancing operations mechanism to reduce this power disadvantage by regaining control and minimizing risk. The study contributes to the understanding of WISE by intersecting HRM practices and power-dependence relations and offering insights into Japan’s unique context. Length:52 Creation-Date: 2024-09 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-005.pdf File-Format: application/pdf Classification-JEL: Keywords:human resource management, power-dependence relations, continuous employment support, work integration social enterprise, Japan Handle: RePEc:kue:epaper:e-24-005 Template-Type: ReDIF-Paper 1.0 Title:Entrepreneurs’ psychological resilience and well-being Author-Name:Satoshi KAWAKATSU Author-Name-First:Satoshi Author-Name-Last:KAWAKATSU Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:- Length:19 Creation-Date: 2024-09 File-URL: File-Format: application/pdf Classification-JEL: Keywords:entrepreneurship, resilience, well-being, COVID-19, fuzzy set qualitative comparative analysis (fsQCA) Handle: RePEc:kue:epaper:e-24-006 Template-Type: ReDIF-Paper 1.0 Title:On Trade Models with Variable Markups and Pareto-Distributed Productivity Author-Name:Ikuto AIBA Author-Name-First:Ikuto Author-Name-Last:AIBA Author-Name:Atsushi TADOKORO Author-Name-First:Atsushi Author-Name-Last:TADOKORO Abstract:We provide more generalized properties of gains from trade and trade liberalization in monopolistic competition models featuring firm heterogeneity characterized as Paretodistributed productivity and variable markups associated with pro-competitive effects. For a large class of utility functions thatwe consider, firmheterogeneity alters the nature of markup distortion that should be addressed by the pro-competitive effects. Our finding implies that the pro-competitive effects of trade are not effective in correcting such markup distortion unique to heterogeneous firm frameworks. As a result, gains from trade in our framework are characterized as consumption variety expansion and selection effects without efficiency gains. We provide rich insights into the varying impacts of trade and trade liberalization across countries with differences in factors such as market size, technology, and geography. Length:59 Creation-Date: 2024-10 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-007.pdf File-Format: application/pdf Classification-JEL:D43, D61, F12, L13 Keywords:Monopolistic competition, Firm heterogeneity, Efficiency, Pro-competitive effect, Gains from trade Handle: RePEc:kue:epaper:e-24-007 Template-Type: ReDIF-Paper 1.0 Title:The influence of the Viveza in the Latin American Business Environment:Exploring and mapping a regional psychological construct Author-Name:Alexis SANDES Author-Name-First:Alexis Author-Name-Last:SANDES Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:Reported news on high-profile business-people engaging in unethical acts frequently headlines Latin American media. Local individuals agree that the Viveza, a Latin American indigenous phenomenon based on prioritizing individual benefits over the ethicality of the acts, promotes dishonest behaviors in the Latin American business environment. Despite its importance for Latin American Societies Despite its importance for individuals who want to conduct business in Latin America, there is a lack of empirical research about the Viveza phenomenon. Through 45 semi-structured interviews with native individuals from 20 Latin American countries who have lived in Japan in the past two years, this study aims to explore and map the Viveza construct and its consequences for Latin American individuals. This research reveals that the Viveza is an institutionalized behavioral pattern in Latin American societies that shapes local social norms, allowing individuals to justify unethical behaviors easily. Moreover, this research also reveals that Viveza significantly influences the daily social interactions between Latin American individuals and the Latin American business environment. This study contributes to the literature by establishing a common ground for a relevant factor in the studies of Latin American societies. In addition, this study provides useful insights for non-Latin American practitioners who engage in business in the Latin American region. Length:47 Creation-Date: 2025-02 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-24-008.pdf File-Format: application/pdf Classification-JEL: Keywords: Handle: RePEc:kue:epaper:e-24-008 Template-Type: ReDIF-Paper 1.0 Title:Nash Reversion Revisited:Implications of Gain/Loss Asymmetry Author-Name:Shuta SAKODA Author-Name-First:Shuta Author-Name-Last:SAKODA Author-Name:Junya YANAGI Author-Name-First:Junya Author-Name-Last:YANAGI Author-Name:Jin-ichiro YAMADA Author-Name-First:Jin-ichiro Author-Name-Last:YAMADA Abstract:This study fundamentally reexamines entrepreneurship education from a university student's perspective using auto-ethnography. Rather than focusing solely on the societal demand for entrepreneurs, it emphasizes individual growth and self-authorship as foundational elements. The research highlights how the excessive commercialization of entrance exams, job hunting, and Japan's rigid public education system constrain university students. By observing “typical” Kyoto University students as commonly imagined by the public, the study identifies potential approaches to addressing these structural challenges. It further explores how fostering self-authorship can naturally lead to ethical and socially responsible entrepreneurship. To test this hypothesis, the Kyodai Marketing Institute (KMI) was established as a practical experiment. Additionally, insights from the University of Florida underscore the significance of student organizations and university engagement in shaping a Japan-specific model of entrepreneurship education. Length:42 Creation-Date: 2025-03 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-25-001.pdf File-Format: application/pdf Classification-JEL: Keywords:Entrepreneurship, Auto-ethnography, Education System, Self-authorship Handle: RePEc:kue:epaper:e-25-001 Template-Type: ReDIF-Paper 1.0 Title:Does Carbon Pricing Affect International Competitiveness? Implications for Carbon Leakage Author-Name:Shoko GOTO Author-Name-First:Shoko Author-Name-Last:GOTO Author-Name:Kenji TAKEUCHI Author-Name-First:Kenji Author-Name-Last:TAKEUCHI Abstract:This study explores the impacts of carbon pricing on the international competitiveness of manufacturing sectors. A simple theoretical framework is developed to examine the link between carbon pricing and the market share of imported goods that may potentially lead to carbon leakage. We analyze the direct and indirect impacts by considering the shift from domestic to foreign inputs in the production of output goods. Using the European Union Emissions Trading System as an empirical setting, we estimate the effects of carbon pricing on imports and total value in both targeted and non-targeted sectors. The analysis of bilateral trade flows reveals that unilateral carbon pricing slightly weakens the competitiveness of the importing country in the target sector markets, potentially increasing the risk of carbon leakage. Conversely, the policy does not affect competitiveness in non-targeted sectors. The results suggest that unilateral carbon pricing directly influences the targeted sectors, but no evidence exists of spillover effects on non-targeted sectors. Length:42 Creation-Date: 2025-04 File-URL: http://www.econ.kyoto-u.ac.jp/dp/papers/e-25-002.pdf File-Format: application/pdf Classification-JEL:Classification Numbers: Q56, Q54, H23, F18 Keywords:Carbon pricing, Competitiveness, Carbon leakage, Trade Handle: RePEc:kue:epaper:e-25-002 Template-Type: ReDIF-Paper 1.0 Title:The relationship between psychological resilience, organizational resilience, and business performance in the context of entrepreneurship Author-Name:Satoshi KAWAKATSU Author-Name-First:Satoshi Author-Name-Last:KAWAKATSU Author-Name:Tomoki SEKIGUCHI Author-Name-First:Tomoki Author-Name-Last:SEKIGUCHI Abstract:If entrepreneurs have higher psychological resilience, can their ventures also increase organizational resilience and achieve higher corporate performance? In this study, we explore the factors that boost venture firm performance from the perspective of resilience in entrepreneurship. Specifically, we theorize the serial mediating effects of entrepreneurs’ networking capacity and organizations’ absorptive capacity between entrepreneur’s psychological resilience and organizational resilience, which ultimately leads to firm performance. The results of our empirical analysis using data from 175 entrepreneurs in Japan during a period when the aftereffects of COVID-19 remained strong in small and medium-sized firms support our theoretical model. This study contributes to a better understanding of resilience in entrepreneurship. Length:32 Creation-Date: 2025-05 File-URL: File-Format: application/pdf Classification-JEL: Keywords:entrepreneurship; psychological resilience; organizational resilience; absorptive capacity; organizational learning; Post COVID-19 Handle: RePEc:kue:epaper:e-25-003