This paper shows that with subsidiaries of different nature due to locational characteristics, the multinational firm not only charges different transfer prices, but also supplies different levels of the intermediate input to the downstream branch. In particular, interior transfer prices are...

The present paper investigates the possibility of domination of mediate matching over independent search. It is shown to be difficult although not impossible. The domination can happen in the case of binary utility, which is consistent with the data and history that mediated match has been...

As part of the Trinity Reform, the Japanese Ministry of Internal Affairs and Communication (MIC) established the Administrative Reform Incentive Assessment (ARIA) program under the local allocation tax (LAT) system during the fiscal year of 2005. This program was aimed at motivating local...

In a modified version of the Gravity Model, appropriate dummy variables have been introduced to analyze the effects of both trade creation and trade diversion by the three economic organizations of the EEC (European Economic Community), the LAFTA (Latin American Free Trade Association) and the...

Consumption externality is introduced into the Ramsey equilibrium model. Existence of Ramsey equilibrium is demonstrated.

In this paper, we first develop a model of an international oligopolistic Cournot industry in which firms trade core goods and their incompatible accessories. We then examine some issues concerned with dumping. We find that such firms set the core goods price below cost (below-cost dumping,...

In Japan, the public health insurance system consists of several health insurance plans, and equal benefit levels as well as fair burden-sharing of costs among plans are considered important under the universal system. This paper deals with health insurance reforms, which are divided into two...