We estimate a medium-scale DSGE model of the Japanese economy following Christiano, Eichenbaum and Evans (2005), Smets and Wouters (2003) and Levin et al. (2005). By using actual capital utilization data and modifying the formulation of utilization following Greenwood, Hercowitz and Huffmann...

This paper tries to shed light on the optimal inflation rate by investigating the effects of changes in inflation on resource allocation via changes in the effective tax rates. Given that some taxes are not lump-sum but subject to the proportional/progressive tax schedule, and that taxes are...

This paper examines the Purchasing Power Parity (PPP) hypothesis of the yen-dollar exchange market by taking into account the following four points: accumulated current accounts as an additional variable, more powerful tests of Horvath and Watson(1995), more appropriate critical values through...