This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in...

Roy, Falk and Fuller (2004) presented a procedure aimed at providing a test for the value of the slope of a trend function that has (nearly) controlled size in autoregressive models whether the noise component is stationary or has a unit root. In this note, we document errors in both their...

Recently, discussion of corporate tax reduction is hot political issue in Japan. Especially, some researchers and politicians insist on the reduction of corporate tax rate, following the fact of "Corporate tax paradox", which means that corporate tax revenue per Gross Domestic Product (GDP) has...

Recently, several countries, which include not only developing, but also developed ones, face the severe sovereign crisis. In this circumstance, we introduce the new method for testing the sustainability of government debt. Previous studies which investigate the sustainability of government debt...

This paper investigates the condition which raising individual consumption tax raises output and private consumption in general equilibrium model. In many of the neoclassical papers, the government expenditure decreases consumption because the government expenditure causes the negative wealth...

Firms have attempted to achieve higher levels of customer satisfaction by providing superior service, supposedly for customer benefit. However, does higher customer benefit always lead to higher customer satisfaction? The model developed by social psychologists suggests that a customer is likely...

This paper reports estimates based on long-run data sets for GDP and trade, with three subsamples chosen to reflect the first globalization period, the "bloc economy" period and the second globalization period. The business cycle is identified as the series of deviates from a Hodrick-Prescott...

This paper provides evidence on whether mandating wider subject variety on high school entrance exams affects long-term educational achievement using Japanese historical experiences. In Japan, where high school education is non-compulsory, prefectural boards of education have retained the...

The Japanese lifetime employment system is believed to be demised and collapsed; however, there are many companies which attach importance to long-term and regular employment. Also these companies have achieved high growth and profitability. In this paper, these facts will be shown and the...

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...