Suppose that an economic agent is (1|ƒÃ)~100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with ƒÃ~100% chance, her conviction is completely wrong and she is left perfectly ignorant about the true measure in the...

Under present financial accounting standards, in Japan and in U.S., firms can hoose pension discount rates, which they use for earnings measurement, at their discretion. First, this paper investigates, what factors affect their choice of pension discount rates. The sample firms in this paper...

A model of self-feeding fear is presented. Suppose that an economic agent is (1-ƒÃ)~100% certain that uncertainty she faces is characterized by a particular probability measure, but that she has a fear that, with ƒÃ~100% chance, her conviction is completely wrong and she is left perfectly...

This paper investigates whether or not the natural selection mechanism (NSM) of economic Darwinism works in severe recessions. Although standard firm models imply the importance of NSM in an economy by showing firm's rational behavior on entry, surviv-ing, and exit leads to macro-level TFP...

In contrast to the traditional model of uncertainty, where the uncertainty is characterized by a single distribution function that a decision maker faces, the Knightian-uncertainty approach characterizes it as a set of distributions rather than a single one. Hence, learning in the context of...

When firms decide about irreversible investment, they may not have perfect confidence about their perceived probability measure describing future uncertainty. They may think other probability measures perturbed from the original one are also probable. Uncertainty characterized by not a single...

This paper investigates the nature and magnitude of distortion in land price information publicly available in Japan, especially in the Published Land Price of the Japanese Government. After examining characteristics of various land price information in Japan, we construct hedonic price indexes...

This paper investigates Zhou [4]'s money search model, where money is divisible, agents can hold any amount of money, and production of goods is costly, and presents a sufficient condition, expressed in terms of exogenously given parameters, for the existence of single-price equilibria.

Random matching models with di erent states are an important class of dynamic games; for example, money search models, job search models, and some games in biology are special cases. In this paper, we investigate the basic structure of the models: the existence of equilibria, the global...

This paper develops a new technique for proving the existence of monetary equilibria in money search models. In money search models with divisible money, the set of equilibria, if it exists, is at least one-dimensional. We develop a method to prove the existence of such a set in a fairly simple...