We propose a theory for rating financial securities based on a concept of self-consistency, which does not allow issuers to gain, by tranching financial securities, from investors who rely on the rating criterion. While the expected loss criterion used by Moody's satisfies self-consistency, the...

The evolution of mobile is reshaping the future of communication in the digital age. This report identifies emerging patterns of mobile communication and the factors that are shaping its future, including its societal implications. This analysis is used to speculate on alternative scenarios for...

We analytically characterize the comparative statics and transitory dynamics of the macroeconomy after a one-time real distortion changes by assuming supply chain adjustment costs. We analytically decompose the comparative static effects into economic structure channel and technology channel....

We analytically characterize the comparative statics of the macroeconomy after in- come tax reductions in which productions are organized in networks. We contribute to the literature by showing that the sectoral income tax reductions’s first-order effect on the GDP is given by a sufficient...

This paper analyzes a dynamic general equilibrium model featuring input-output linkages, imperfect competition, and external economies of scale with firm entry and exit. We analytically show the interaction between input-output linkages and firm entry and exit augments the amplification of...