This paper develops a general approximation scheme, henceforth called a hybrid asymptotic expansion scheme for the valuation of multi-factor European path-independent derivatives. Specifically, we apply it to pricing long-term currency options under a market model of interest rates and a general...

According to modern contract theory, how firms structure their trading patterns and governance structures will depend both on the size of any relationship-specific investments they make, and on the feasibility of detailed contracts. Suppose contracts are hard to draft and enforce, but firm A...

This paper shows a detail-free idea of multi-object large double auction design in general trading environments, where the auctioneer randomly divides agents into two groups, and agents in each group trade at the market-clearing price vector in the other group. With private values, any dominant...

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 this paper, we estimated the net agglomeration economies in the consumption side as well as the production side using Japanese city-based data of 1992, when interregional net migration nearly ceased. We showed that doubling city size increases the nominal wage by approximately 10% but...

The main purpose of this paper is to offer a somewhat novel theory of deep democracy from a political and social economy perspective. The theory of deep democracy presented here makes a distinction between formal aspects of democracy and the deeper structural aspects. In order for democracy to...

This paper shows the macroeconomic and welfare implications of an aging population in the United States, using an overlapping-generations model with heterogeneous households. The model uses three population projections in Social Security Administration (2003), and generates economies as...

Consider a stochastic process with two probability laws, one of which is absolutely continuous with respect to the other. Under each law, we look at a process consisting of the conditional distributions of the future given the past. Blackwell and Dubins (1962) showed in discrete case that those...

This paper examines the direction and the magnitude of bias in the technological progress measurement due to imperfect competition and short-run fixed costs. We show that, if capital growth exceeds non-capital input growth, the traditional measure underestimates the true technological growth if...

Observers of the formerly communist transitional economies urge firms there to obtain funds from a relatively few sources. They note the institutional problems the firms face: courts not working, markets not developed, statutes not written. Because these firms cannot rely on the courts to...