The impact of schooling on wages decreases as employers learn about workers' abilities from their experience. While this employer learning often proceeds asymmetrically between incumbent and entrant employers, large firms' internal labor markets could satisfy the statistical assumption of the...

Does the ownership structure affect firms' performance? We first theoretically show that in an inefficient market, investors motivate managers to pursue a higher return on equity, the short-term performance indicator instead of a higher return on asset, the long-term indicator and encourage...

Industrial clusters and factory industries co-develop during industrialization and the relational contracts between manufacturers and subcontractors are the organizational basis of clusters. We predict that relational transactions between manufacturers and subcontractors and cooperative action...

Japan experienced falling asset prices, financial market reform, and non-performing loan reductions from the late 1990s. We examine whether it was appropriate to guide the banking sector to aggressively write off non-performing loans in the early 2000s under the shadow of regulatory reform and...

Transaction costs depend on the degree of informational asymmetry in trading goods. This environment provides commitment to certain quality with an opportunity to earn quality premium given the degree of asymmetry. A device of commitment to quality could be inspection and branding either by a...

Transition between private governance mechanism and the state court is not necessarily unidirectional. This research assumes that non-monotonic changes in governance mechanism comes from complementarity between the private and public mechanisms when neither of both is sufficiently efficient....

An intrinsic feature of a pre-modern society is in its fragmentary markets. Fragmentary markets are more likely to fail in the coordination of resource allocation. However, if a concentrated market is exogenously formed and the market could provide the only price to local markets, the market can...

An intrinsic feature of a pre-modern society is in its fragmentary markets. Fragmentary markets are more likely to fail in the coordination of resource allocation. However, if a concentrated market is exogenously formed and the market could provide the only price to local markets, the market can...

Japan experienced a rapid expansion of the capital market in the 1880-1900s, introducing Western institutions combining it with Japanfs traditional bond market regime, which provided financial source of industrialization. The rapid expansion of the infant capital market was in fact accelerated...

The modern contract law generally does not allow a perfected claim to be placed on employees. This constraint makes a claim to the return on employer's investment in recruiting and training a worker vulnerable against a possible bystanders' infringement on the claim. Accordingly, employers might...