This paper incorporates social psychology into implementation theory. Real individuals care not only about their material benefits but also about their social influence in terms of obedience and conformity. Using a continuous time horizon, we demonstrate a method of manipulating the...

In this paper, we apply the ARFIMA-GARCH model to the realized volatility and the continuous sample path variations constructed from high-frequency Nikkei 225 data. While the homoskedastic ARFIMA model performs excellently in predicting the Nikkei 225 realized volatility time series and their...

We investigate implementation of social choice functions as mappings from states to lotteries under complete information. We assume that for every agent, any pair of distinct states induces distinct preferences. A social choice function is called Condorcet-decisive if it always enforces the...

This paper develops a critique of the standard principal-agent approach to corporate governance by developing the idea of a family based corporate governance system (FBS). FBS is contrasted with the bank-led system (BLS) and equity market based system (EMS). Both BLS and EMS are closely...

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...

Under incompleteness of contracts, we consider one role of unions to be as a commitment device. When wage and dismissal rate contingent on the states are not described in labor contracts, although a wage offer is verifiable, the firm cannot promise to keep employment ex ante and cannot make...

We consider goodness-of-fit tests of Cauchy distribution based on weighted integrals of the squared distance of the difference between the empirical characteristic function of the standardized data and the characteristic function of the standard Cauchy distribution. For standardization of data...

Despite the airport privatization and deregulation trend in recent years, whether or not the privatized or commercialized airports should be left unregulated is still an open question. Related to this issue, one question that has received a very little attention to date is if and how pricing...

Consider the problem of testing the linear hypothesis on the regression coefficients in the Fay-Herriot model which has been used in the small area problem. Since this model involves the random effects, a test based on the generalized least squares estimator, called the GLS test, depends on the...

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...