Informal care is increasingly important in countries undergoing population ageing. Previous research has discussed how the long-term care system may affect the behaviours of informal caregivers but has not paid much attention to how changes in caregivers' circumstances, particularly their health, affect those receiving their care. Using the Japanese Study of Aging and Retirement, we empirically examine how caregivers' health condition may affect the elderly parents receiving their care. We find empirical evidence that declining caregivers' health adversely affects care recipients' health. We see such links between informal caregivers and their in-laws, demonstrating that these effects go beyond genetic influences.
{"title":"Effects of Informal Caregivers' Health on Care Recipients*","authors":"Michio Yuda, Jinkook Lee","doi":"10.1111/jere.12102","DOIUrl":"10.1111/jere.12102","url":null,"abstract":"<p>Informal care is increasingly important in countries undergoing population ageing. Previous research has discussed how the long-term care system may affect the behaviours of informal caregivers but has not paid much attention to how changes in caregivers' circumstances, particularly their health, affect those receiving their care. Using the Japanese Study of Aging and Retirement, we empirically examine how caregivers' health condition may affect the elderly parents receiving their care. We find empirical evidence that declining caregivers' health adversely affects care recipients' health. We see such links between informal caregivers and their in-laws, demonstrating that these effects go beyond genetic influences.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 2","pages":"192-210"},"PeriodicalIF":1.2,"publicationDate":"2016-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12102","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"34594984","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 present study explores public pension claiming behaviour among the Japanese elderly. First, we perform financial simulations, estimate expected utility and depict the typical patterns of pension benefits over a lifecycle. We show that a beneficiary's optimal retirement age depends on that beneficiary's mortality risk, discount rate, initial wealth and risk attitude. Second, we use individual-level data from the Japanese Study on Aging and Retirement (JSTAR) to empirically examine the determinants of claim timing. We find evidence that most of the factors examined in the simulation are, indeed, significantly associated with early claiming among wage earners of pension benefits.
{"title":"Public Pension Benefits Claiming Behaviour: new Evidence from the Japanese Study on Ageing and Retirement","authors":"Satoshi Shimizutani, Takashi Oshio","doi":"10.1111/jere.12100","DOIUrl":"10.1111/jere.12100","url":null,"abstract":"<p>The present study explores public pension claiming behaviour among the Japanese elderly. First, we perform financial simulations, estimate expected utility and depict the typical patterns of pension benefits over a lifecycle. We show that a beneficiary's optimal retirement age depends on that beneficiary's mortality risk, discount rate, initial wealth and risk attitude. Second, we use individual-level data from the Japanese Study on Aging and Retirement (JSTAR) to empirically examine the determinants of claim timing. We find evidence that most of the factors examined in the simulation are, indeed, significantly associated with early claiming among wage earners of pension benefits.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 3","pages":"235-256"},"PeriodicalIF":1.2,"publicationDate":"2016-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12100","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128676528","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}
We propose a generalized method of moments (GMM) estimator with optimal instruments for a probit model that includes a continuous endogenous regressor. This GMM estimator incorporates the probit error and the heteroscedasticity of the error term in the first-stage equation in order to construct the optimal instruments. The estimator estimates the structural equation and the first-stage equation jointly and, based on this joint moment condition, is efficient within the class of GMM estimators. To estimate the heteroscedasticity of the error term of the first-stage equation, we use the k-nearest neighbour (k-nn) non-parametric estimation procedure. Our Monte Carlo simulation shows that in the presence of heteroscedasticity and endogeneity, our GMM estimator outperforms the two-stage conditional maximum likelihood estimator. Our results suggest that in the presence of heteroscedasticity in the first-stage equation, the proposed GMM estimator with optimal instruments is a useful option for researchers.
{"title":"Moment Estimation of the Probit Model with an Endogenous Continuous Regressor","authors":"Daiji Kawaguchi, Yukitoshi Matsushita, Hisahiro Naito","doi":"10.1111/jere.12091","DOIUrl":"10.1111/jere.12091","url":null,"abstract":"<p>We propose a generalized method of moments (GMM) estimator with optimal instruments for a probit model that includes a continuous endogenous regressor. This GMM estimator incorporates the probit error and the heteroscedasticity of the error term in the first-stage equation in order to construct the optimal instruments. The estimator estimates the structural equation and the first-stage equation jointly and, based on this joint moment condition, is efficient within the class of GMM estimators. To estimate the heteroscedasticity of the error term of the first-stage equation, we use the <i>k</i>-nearest neighbour (<i>k</i>-nn) non-parametric estimation procedure. Our Monte Carlo simulation shows that in the presence of heteroscedasticity and endogeneity, our GMM estimator outperforms the two-stage conditional maximum likelihood estimator. Our results suggest that in the presence of heteroscedasticity in the first-stage equation, the proposed GMM estimator with optimal instruments is a useful option for researchers.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"68 1","pages":"48-62"},"PeriodicalIF":1.2,"publicationDate":"2016-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12091","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131944036","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}
Kuang-Cheng Andy Wang, Ching-Chih Tseng, Wen-Jung Liang
We develop a two-country duopoly model to explore the optimal licensing contract for an outsider licensor in terms of fixed-fee and royalty licensing by taking into account trade barriers when firms produce a homogeneous product and engage in Bertrand competition in each market. The present paper focuses on the interaction between licensing and trade barriers in two international markets. We show that both royalty and non-exclusive fixed-fee licensing can be optimal. Furthermore, exclusive fixed-fee licensing can be optimal, which is a result that is not discussed in the existing literature.
{"title":"Patent Licensing in the Presence of Trade Barriers","authors":"Kuang-Cheng Andy Wang, Ching-Chih Tseng, Wen-Jung Liang","doi":"10.1111/jere.12098","DOIUrl":"10.1111/jere.12098","url":null,"abstract":"<p>We develop a two-country duopoly model to explore the optimal licensing contract for an outsider licensor in terms of fixed-fee and royalty licensing by taking into account trade barriers when firms produce a homogeneous product and engage in Bertrand competition in each market. The present paper focuses on the interaction between licensing and trade barriers in two international markets. We show that both royalty and non-exclusive fixed-fee licensing can be optimal. Furthermore, exclusive fixed-fee licensing can be optimal, which is a result that is not discussed in the existing literature.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 3","pages":"329-347"},"PeriodicalIF":1.2,"publicationDate":"2016-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12098","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83551951","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}
Apportionment of representatives is a basic rule of everyday politics. By definition, this basic rule is a constitutional stage problem and should be decided behind the veil of uncertainty. To bring apportionment closer to quotas, we introduce f‐divergence for utilitarianism and Bregman divergence for consistent optimization. Even in our less restricted condition, we find that we must use α‐divergence for optimization and show that the minimization of α‐divergence induces the same divisor methods that correspond to the maximization of the Kolm–Atkinson social welfare function (or the expected utility function), which is bounded by constant relative risk aversion.
{"title":"Apportionment Behind the Veil of Uncertainty*","authors":"Junichiro Wada","doi":"10.1111/jere.12093","DOIUrl":"10.1111/jere.12093","url":null,"abstract":"Apportionment of representatives is a basic rule of everyday politics. By definition, this basic rule is a constitutional stage problem and should be decided behind the veil of uncertainty. To bring apportionment closer to quotas, we introduce f‐divergence for utilitarianism and Bregman divergence for consistent optimization. Even in our less restricted condition, we find that we must use α‐divergence for optimization and show that the minimization of α‐divergence induces the same divisor methods that correspond to the maximization of the Kolm–Atkinson social welfare function (or the expected utility function), which is bounded by constant relative risk aversion.","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 3","pages":"348-360"},"PeriodicalIF":1.2,"publicationDate":"2016-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12093","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129905705","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}
We investigate the international transmission of the 2007–2009 financial crisis to Japanese firms by examining both stock returns and changes in operating performance during the crisis. Our results indicate that Japanese firms were affected by the crisis mainly through the trade channel in both stock returns and changes in operating performance. We also find that the liquidity channel played a role in the fall of stock returns in response to the crisis and in the changes in return on assets during the first year of the crisis. We obtain weak evidence for the credit crunch channel and no evidence to support the trade finance channel.
{"title":"International Transmission of the 2007–2009 Financial Crisis: Evidence from Japan","authors":"Kaoru Hosono, Miho Takizawa, Kotaro Tsuru","doi":"10.1111/jere.12092","DOIUrl":"10.1111/jere.12092","url":null,"abstract":"<p>We investigate the international transmission of the 2007–2009 financial crisis to Japanese firms by examining both stock returns and changes in operating performance during the crisis. Our results indicate that Japanese firms were affected by the crisis mainly through the trade channel in both stock returns and changes in operating performance. We also find that the liquidity channel played a role in the fall of stock returns in response to the crisis and in the changes in return on assets during the first year of the crisis. We obtain weak evidence for the credit crunch channel and no evidence to support the trade finance channel.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 3","pages":"295-328"},"PeriodicalIF":1.2,"publicationDate":"2016-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12092","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79705876","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, we use high-frequency data to explore the effects of return and volatility spillover during periods in which trading hours in China and Japan overlap. Specifically, we utilize 5-min returns to estimate fractionally integrated asymmetric power autoregressive conditional heteroskedasticity and fractionally integrated exponential generalized autoregressive conditional heteroskedasticity models, then use the models' standardized residuals to employ a cross-correlation function approach that tests for the degree to which the Chinese and Japanese markets affect each other. Results indicate a unidirectional influence of the Chinese stock market on Japanese markets in terms of return. This result is likely attributable to restrictions on foreign investment in the Chinese market and the lack of diversified international portfolios among individual Chinese investors.
{"title":"The Chinese Stock Market Does not React to the Japanese Market: Using Intraday Data to Analyse Return and Volatility Spillover Effects","authors":"Yusaku Nishimura, Yoshiro Tsutsui, Kenjiro Hirayama","doi":"10.1111/jere.12086","DOIUrl":"10.1111/jere.12086","url":null,"abstract":"<p>In this paper, we use high-frequency data to explore the effects of return and volatility spillover during periods in which trading hours in China and Japan overlap. Specifically, we utilize 5-min returns to estimate fractionally integrated asymmetric power autoregressive conditional heteroskedasticity and fractionally integrated exponential generalized autoregressive conditional heteroskedasticity models, then use the models' standardized residuals to employ a cross-correlation function approach that tests for the degree to which the Chinese and Japanese markets affect each other. Results indicate a unidirectional influence of the Chinese stock market on Japanese markets in terms of return. This result is likely attributable to restrictions on foreign investment in the Chinese market and the lack of diversified international portfolios among individual Chinese investors.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"67 3","pages":"280-294"},"PeriodicalIF":1.2,"publicationDate":"2016-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12086","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115516162","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 examines the determinants of firm survival in export markets by explicitly taking into account the impact of firms’ previous export market experience and their product differentiation. Utilizing a 16-year panel data set for Japanese manufacturing firms, we employ panel probit estimation to examine the likelihood of exit from export markets. The results of our estimations show, first, that the exit probability from export markets decreased over the export duration. Second, the probability of exiting from export markets tended to be lower when firms were more R&D intensive both prior to and after starting exporting. The first result implies that exporting experience plays an important role in firms’ survival in export markets. Our second result implies that firms producing differentiated products likely have a greater incentive to make upfront investments to start exporting, and these investments, in turn, enable such firms to survive in export markets for a longer period.
{"title":"Export Experience, Product Differentiation and Firm Survival in Export Markets","authors":"Tomohiko Inui, Keiko Ito, Daisuke Miyakawa","doi":"10.1111/jere.12083","DOIUrl":"10.1111/jere.12083","url":null,"abstract":"<p>This paper examines the determinants of firm survival in export markets by explicitly taking into account the impact of firms’ previous export market experience and their product differentiation. Utilizing a 16-year panel data set for Japanese manufacturing firms, we employ panel probit estimation to examine the likelihood of exit from export markets. The results of our estimations show, first, that the exit probability from export markets decreased over the export duration. Second, the probability of exiting from export markets tended to be lower when firms were more R&D intensive both prior to and after starting exporting. The first result implies that exporting experience plays an important role in firms’ survival in export markets. Our second result implies that firms producing differentiated products likely have a greater incentive to make upfront investments to start exporting, and these investments, in turn, enable such firms to survive in export markets for a longer period.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"68 2","pages":"217-231"},"PeriodicalIF":1.2,"publicationDate":"2016-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12083","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122530795","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}
We find empirical evidence that pre-initial public offering (IPO) relationships with commercial banks through lending and investment via their venture capital subsidiaries significantly reduce IPO underpricing in Japan. This findings suggest that a pre-IPO banking relationship certifies the low risk of an IPO firm. Given the fact that institutional investors are a minority in the allocation of IPO stocks in Japan, this effect is expected to come mainly from reducing either the investors' winner's curse or the signaling incentive of IPO firms, rather than from the reduction in information rent for institutional investors participating in the book-building process.
{"title":"The Certification Role Of Pre-IPO Banking Relationships: Evidence From IPO Underpricing in Japan","authors":"Yoshiaki Ogura","doi":"10.1111/jere.12082","DOIUrl":"10.1111/jere.12082","url":null,"abstract":"<p>We find empirical evidence that pre-initial public offering (IPO) relationships with commercial banks through lending and investment via their venture capital subsidiaries significantly reduce IPO underpricing in Japan. This findings suggest that a pre-IPO banking relationship certifies the low risk of an IPO firm. Given the fact that institutional investors are a minority in the allocation of IPO stocks in Japan, this effect is expected to come mainly from reducing either the investors' winner's curse or the signaling incentive of IPO firms, rather than from the reduction in information rent for institutional investors participating in the book-building process.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"68 2","pages":"257-278"},"PeriodicalIF":1.2,"publicationDate":"2016-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12082","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131004171","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 both firm-level and city-level data from the Chinese National Bureau of Statistics and unique information on investment promotion agencies (IPA) in China, the present paper evaluates whether IPA affect foreign direct investment (FDI) from the perspective of both intensive and extensive margins; that is, re-investment by incumbent foreign-owned firms and total new FDI inflows into the city, respectively. After controlling for potential determinants of FDI and correcting for biases due to endogeneity, we find that, in general, IPA do not necessarily increase FDI in either case. However, IPA are found to promote re-investment by large foreign-owned firms. The results imply difficulty in the dissemination of information about the business environment to foreign investors.
{"title":"How Effective are Investment Promotion Agencies? Evidence from China","authors":"Bin Ni, Yasuyuki Todo, Tomohiko Inui","doi":"10.1111/jere.12089","DOIUrl":"10.1111/jere.12089","url":null,"abstract":"<p>Using both firm-level and city-level data from the Chinese National Bureau of Statistics and unique information on investment promotion agencies (IPA) in China, the present paper evaluates whether IPA affect foreign direct investment (FDI) from the perspective of both intensive and extensive margins; that is, re-investment by incumbent foreign-owned firms and total new FDI inflows into the city, respectively. After controlling for potential determinants of FDI and correcting for biases due to endogeneity, we find that, in general, IPA do not necessarily increase FDI in either case. However, IPA are found to promote re-investment by large foreign-owned firms. The results imply difficulty in the dissemination of information about the business environment to foreign investors.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":"68 2","pages":"232-243"},"PeriodicalIF":1.2,"publicationDate":"2016-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12089","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133288226","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}