Many previous studies based on a simple model of heterogeneous firms have identified characteristics of multinational firms engaging in export or foreign direct investment (FDI). While they focused mainly on firms that serve developed countries, this study analyzes both firms serving developing...

It is widely accepted that the required return on investment is regarded as the weighted average cost of capital. The method for deciding whether an investment should be executed relies on the weighted average cost of capital; for example, NPV or IRR is presented in many textbooks as fundamental...

We show that the dominant punishment strategy and coalitionally dominant strategy applied to TU coalitional strategic games give directly the saddle point expression for the coalitional aggregate payoff function, which is the condition for the equivalence of the strategic cores α and β. Also,...

This paper empirically investigates two areas of changes in firm behavior and performance at home before and after investing abroad. The first is the type of foreign direct investment (FDI): horizontal FDI or vertical FDI. The second is the firm's domestic activities of interest: production...

Using the option pricing based model of the deposit insurance, for all the listed banks in Japan, we compute the actuarially fair insurance premium as well as the market value of assets and asset volatility implied by banks' stock prices. The findings based on these variables imply that banks...

This paper investigates poverty traps with the Local Allocation Tax (LAT) grants in Japan. The LAT grants, which distributed to local governments by the central government, may be hesitated to make efforts for enhancing regional economic growth, due to the calculation of the LAT grants. We show...

This paper examines the effects of taxes on the timing of births and marriages in Japan using the "National Survey on Families" (Kazoku ni tsuite no Zenkoku Chousa). We estimate the average effect of the income tax deduction for dependents on the timing of births for those parents who are most...

Purposes of this paper are to establish the model for explaining Japanese young's housing demand and to derive the implication to guide Japanese housing policy. For this, I investigate the determinants of their tenure choice, considering their housing independence from their parents. On the...

Inspired by the observed contrasting patterns of geographical distribution of the electric machinery industry in East Asia and Europe, this paper conducts an empirical clarification of the difference in spatial relationships in the industry sizes among countries within a region by use of spatial...

In this study, we statistically test the validity of the mechanics of complex vertical foreign direct investment (VFDI) in Japanese machinery FDI to East Asia by estimating a multiple-spatial lag model. From the theoretical viewpoint, in complex VFDI, the production activity of affiliates in a...