Academic attention to the central bank's retained profits has been scarce, although their magnitudes are nontrivial. This paper confirms that the profits retained as a reserve fund, if combined with unconstrained bureaucratic discretion, can engender inflationary bias. This result is intriguing because the previous literature emphasizes a similar distortion in monetary policy for the opposite case where those profits are turned over to the Treasury. We therefore propose that some external changes in central-banking institutions alone may not warrant their desired 'outcome' without reining in excessive discretion. This proposition can provide a beneficial implication for establishing the meaningful independence of central banks.
{"title":"A Macro-economic Consequence of the Central Bank's Reserve Fund: A Political-economic Perspective","authors":"Iljoong Kim, Inbae Kim","doi":"10.15057/22025","DOIUrl":"https://doi.org/10.15057/22025","url":null,"abstract":"Academic attention to the central bank's retained profits has been scarce, although their magnitudes are nontrivial. This paper confirms that the profits retained as a reserve fund, if combined with unconstrained bureaucratic discretion, can engender inflationary bias. This result is intriguing because the previous literature emphasizes a similar distortion in monetary policy for the opposite case where those profits are turned over to the Treasury. We therefore propose that some external changes in central-banking institutions alone may not warrant their desired 'outcome' without reining in excessive discretion. This proposition can provide a beneficial implication for establishing the meaningful independence of central banks.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"143-163"},"PeriodicalIF":0.6,"publicationDate":"2011-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66729525","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economists unanimously agree that economic agents’ expectations are crucially important in determining macroeconomic outcomes. However, mainstream macroeconomists usually simply assume that expectations are rational, leaving unexamined the fundamental question whether individual agents’ actual expectations are rational or not. Against this background, this study examines the properties of Japanese households’ inflation expectations using micro-based inflation expectations data from the Monthly Consumer Confidence Survey Covering All of Japan. Our analyses show that actual inflation expectations by Japanese households are not rational in the sense that they are upward biased, at least ex post, and individual households appear not to instantaneously incorporate into their expectations information that is freely available from news reports on the views of professional forecasters. Our findings, moreover, suggest that while the sticky information model appears to better explain inflation expectations dynamics (than rational expectations models), we encounter a handful of facts that look inconsistent with the simple model.
{"title":"Inflation Expectations of Japanese Households: Micro Evidence from a Consumer Confidence Survey","authors":"M. Hori, M. Kawagoe","doi":"10.15057/25776","DOIUrl":"https://doi.org/10.15057/25776","url":null,"abstract":"Economists unanimously agree that economic agents’ expectations are crucially important in determining macroeconomic outcomes. However, mainstream macroeconomists usually simply assume that expectations are rational, leaving unexamined the fundamental question whether individual agents’ actual expectations are rational or not. Against this background, this study examines the properties of Japanese households’ inflation expectations using micro-based inflation expectations data from the Monthly Consumer Confidence Survey Covering All of Japan. Our analyses show that actual inflation expectations by Japanese households are not rational in the sense that they are upward biased, at least ex post, and individual households appear not to instantaneously incorporate into their expectations information that is freely available from news reports on the views of professional forecasters. Our findings, moreover, suggest that while the sticky information model appears to better explain inflation expectations dynamics (than rational expectations models), we encounter a handful of facts that look inconsistent with the simple model.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"54 1","pages":"17-38"},"PeriodicalIF":0.6,"publicationDate":"2011-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66730440","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christoph Spengel, Wei Li, Ben T. Zinn, Katharina Finke
The Asia-Pacific region has gained economic power among the worldʼs economies and offers enormous sales opportunities for multinational companies. When considering foreign
亚太地区在世界经济中占有重要地位，为跨国公司提供了巨大的销售机会。在考虑国外
{"title":"The Computation and Comparison of the Effective Tax Burden in Four Asian Countries","authors":"Christoph Spengel, Wei Li, Ben T. Zinn, Katharina Finke","doi":"10.15057/19219","DOIUrl":"https://doi.org/10.15057/19219","url":null,"abstract":"The Asia-Pacific region has gained economic power among the worldʼs economies and offers enormous sales opportunities for multinational companies. When considering foreign","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"13-39"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66729206","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper evaluates the Korea National Pension (KNP) and investigates its redistribution effects. The educational level is used as a proxy for mortality and various socioeconomic factors are considered. The financial and utility-based analyses reveal strong progressive redistribution with income level. Also, the utility-based analysis indicates significant progressive redistribution with non-pension asset level but no significant redistribution with the educational level. Generally, the KNP is extremely valuable and its value seems higher with a pre-existing private annuity especially for the poor. Finally, when people are assumed to spend at least the minimum consumption level, it becomes more beneficial.
{"title":"THE VALUATION AND REDISTRIBUTION EFFECT OF THE KOREA NATIONAL PENSION","authors":"Yoonkyung Yuh, Jaehwan Yang","doi":"10.15057/19215","DOIUrl":"https://doi.org/10.15057/19215","url":null,"abstract":"This paper evaluates the Korea National Pension (KNP) and investigates its redistribution effects. The educational level is used as a proxy for mortality and various socioeconomic factors are considered. The financial and utility-based analyses reveal strong progressive redistribution with income level. Also, the utility-based analysis indicates significant progressive redistribution with non-pension asset level but no significant redistribution with the educational level. Generally, the KNP is extremely valuable and its value seems higher with a pre-existing private annuity especially for the poor. Finally, when people are assumed to spend at least the minimum consumption level, it becomes more beneficial.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"113-142"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66728746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
It is well recognized that the impact of subsidization/taxation policies hinges on the market structure to which they apply. We show that different degree of efficiency gain sharply changes the comparisons of optimal subsidy, total outputs and social welfare between mixed and private duopoly. What is more, for an imposition of an optimal subsidy, welfare may increase, decrease, or remain unchanged with privatization, which depends on the level of the cost efficiency gap and the taxation burden. However, it may be possible to raise welfare through privatization as long as the efficiency gain prevails or no excess taxation burden exists. Government sets higher subsidy to stimulate firms' production if the value of cost-differential is assured.
{"title":"Privatization, Efficiency Gap, and Subsidization with Excess Taxation Burden","authors":"L. F.S., Tai-liang Chen","doi":"10.15057/19217","DOIUrl":"https://doi.org/10.15057/19217","url":null,"abstract":"It is well recognized that the impact of subsidization/taxation policies hinges on the market structure to which they apply. We show that different degree of efficiency gain sharply changes the comparisons of optimal subsidy, total outputs and social welfare between mixed and private duopoly. What is more, for an imposition of an optimal subsidy, welfare may increase, decrease, or remain unchanged with privatization, which depends on the level of the cost efficiency gap and the taxation burden. However, it may be possible to raise welfare through privatization as long as the efficiency gain prevails or no excess taxation burden exists. Government sets higher subsidy to stimulate firms' production if the value of cost-differential is assured.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"55-68"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66728800","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A duration analysis is adopted in this study to investigate the determinants of the "interest rate spells" across ten countries (or area) . Both parametric and nonparametric methods are employed for the analysis. It is found that the length of "interest rate spells" is affected by both the rate of inflation and the rate of economic growth. In contrast, the influence of exchange and unemployment rates proved to be insignificant and the lagged interest rate is significant only for Denmark. The empirical results support the contention that central banks usually design their interest rate policies based on the Taylor Rule.
{"title":"Duration Analysis of Interest Rate Spells: Cross-National Study of Interest Rate Policy","authors":"Yingwen Guo, Sherry Zhou Z.F.","doi":"10.15057/19214","DOIUrl":"https://doi.org/10.15057/19214","url":null,"abstract":"A duration analysis is adopted in this study to investigate the determinants of the \"interest rate spells\" across ten countries (or area) . Both parametric and nonparametric methods are employed for the analysis. It is found that the length of \"interest rate spells\" is affected by both the rate of inflation and the rate of economic growth. In contrast, the influence of exchange and unemployment rates proved to be insignificant and the lagged interest rate is significant only for Denmark. The empirical results support the contention that central banks usually design their interest rate policies based on the Taylor Rule.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"1-11"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66728688","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to investigate whether demand and supply have been equilibrated in the Japanese bank loan market over the period especially after the bubble era, and if not, what the main reasons are for this state of disequilibrium. For this purpose, we have improved and extended the analysis of Asako and Uchino (1987) by taking into account notable changes in the Japanese economy. We conclude that situation of the Japanese loan market has basically been same as in the old days of Asako and Uchino (1987), although the prevailing state of disequilibrium has shifted from excess demand to excess supply. The market loan rate lacks a mechanism for rapid adjustment towards the market equilibrium rate and it is instead guided by some policy-related interest rate that does not clear the market.
{"title":"A DISEQUILIBRIUM ANALYSIS OF THE JAPANESE LOAN MARKET: WERE THE POST-BUBBLE PERIODS IN DISEQUILIBRIUM?","authors":"Zhentao Liu, Kazumi Asako","doi":"10.15057/19218","DOIUrl":"https://doi.org/10.15057/19218","url":null,"abstract":"The purpose of this paper is to investigate whether demand and supply have been equilibrated in the Japanese bank loan market over the period especially after the bubble era, and if not, what the main reasons are for this state of disequilibrium. For this purpose, we have improved and extended the analysis of Asako and Uchino (1987) by taking into account notable changes in the Japanese economy. We conclude that situation of the Japanese loan market has basically been same as in the old days of Asako and Uchino (1987), although the prevailing state of disequilibrium has shifted from excess demand to excess supply. The market loan rate lacks a mechanism for rapid adjustment towards the market equilibrium rate and it is instead guided by some policy-related interest rate that does not clear the market.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"87-111"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66729186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, I critically examine how geographers and other social scientists have developed complementary research programs for economistic studies of finance by drawing on new relational concepts such as networks and embeddedness and opening up new research frontiers. In so doing, I investigate how global financial spaces have been conceptualized in mainstream finance literature and how economic concepts have been applied to studies of finance. Drawing on these discussions, I suggest that we need to undertake an alternative research of financial space that pays more attention to relational power dynamics among financial firms and the macroeconomic impacts of financial flows on regional economies.
{"title":"GEOGRAPHIES OF FINANCE: CENTERS, FLOWS, AND RELATIONS","authors":"Bongman Seo","doi":"10.15057/19216","DOIUrl":"https://doi.org/10.15057/19216","url":null,"abstract":"In this paper, I critically examine how geographers and other social scientists have developed complementary research programs for economistic studies of finance by drawing on new relational concepts such as networks and embeddedness and opening up new research frontiers. In so doing, I investigate how global financial spaces have been conceptualized in mainstream finance literature and how economic concepts have been applied to studies of finance. Drawing on these discussions, I suggest that we need to undertake an alternative research of financial space that pays more attention to relational power dynamics among financial firms and the macroeconomic impacts of financial flows on regional economies.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"69-86"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66728758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper analyzes the effect of interaction among heterogeneous investors on equity prices. We classify investors into three groups according to their information sets and beliefs: informed investors, trend followers, and contrarians. Then, the equity price is derived through the market clearing condition. Our model explains many anomalous phenomena in the equity markets, including excess volatility, the momentum effect, and the mean-reverting effect. Further, the empirical analysis shows that the difference in returns behavior between small- and large-cap equities in the U.S. market can be explained by differences in the composition of investors.
{"title":"A Model of Equity Prices with Heterogeneous Beliefs","authors":"Masakazu Suzuki","doi":"10.15057/19220","DOIUrl":"https://doi.org/10.15057/19220","url":null,"abstract":"This paper analyzes the effect of interaction among heterogeneous investors on equity prices. We classify investors into three groups according to their information sets and beliefs: informed investors, trend followers, and contrarians. Then, the equity price is derived through the market clearing condition. Our model explains many anomalous phenomena in the equity markets, including excess volatility, the momentum effect, and the mean-reverting effect. Further, the empirical analysis shows that the difference in returns behavior between small- and large-cap equities in the U.S. market can be explained by differences in the composition of investors.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"52 1","pages":"41-54"},"PeriodicalIF":0.6,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66729256","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using census-type data of Hungarian firms, we test major hypotheses of spatial economic theories focusing on the impact of industrial and market concentrations on regional economic growth. Our empirical evidence confirms that both industrial and market concentrations have a significant positive impact on production growth. This finding strongly supports the Marshall- Arrow-Romer model of local knowledge externalities, suggesting that investment-driven regional development prevails in Hungary.
{"title":"INDUSTRY CLUSTER AND REGIONAL ECONOMIC GROWTH: EVIDENCE FROM HUNGARY","authors":"B. Lengyel, I. Iwasaki, M. Szanyi","doi":"10.15057/18777","DOIUrl":"https://doi.org/10.15057/18777","url":null,"abstract":"Using census-type data of Hungarian firms, we test major hypotheses of spatial economic theories focusing on the impact of industrial and market concentrations on regional economic growth. Our empirical evidence confirms that both industrial and market concentrations have a significant positive impact on production growth. This finding strongly supports the Marshall- Arrow-Romer model of local knowledge externalities, suggesting that investment-driven regional development prevails in Hungary.","PeriodicalId":43705,"journal":{"name":"Hitotsubashi Journal of Economics","volume":"51 1","pages":"93-112"},"PeriodicalIF":0.6,"publicationDate":"2010-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66728548","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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