The effect of accepting more immigrants on welfare in the presence of a pay-as-you-go social security system is analyzed qualitatively and quantitatively. First, it is shown that if initially there exist intergenerational government transfers from the young to the old, the government can lead an...

Can a smaller-class at school lead to a better educational outcome and more equality in achievement? We estimate the causal effects of class-size on achievement tests by using discontinuous changes in class-size under the Japanese public compulsory education system. We employ a value-added model...

This paper analyzes the boom-bust cycle driven by rational bubbles in an overlapping-generations economy that is subject to borrowing constraints. At the heart of the analysis is the interplay among savings, investment, and the interest rate. Bubbles are more likely to crowd investment in, the...

In this paper, we empirically investigate how real estate prices are affected by aging. We run regional panel regressions for Japan and the United States. Our regression results show that, both in Japan and the U.S., real estate prices in a region are inversely correlated with the old age...

We study the impact that the liquidity crunch in 2008-2009 had on the U.S. economy's growth trend. To this end, we propose a model featuring endogenous growth ¨¢ la Romer and a liquidity friction ¨¢ la Kiyotaki-Moore. A key finding in our study is that liquidity declined around the demise of...

A German internet auction site creates a new auction procedure as an application for iPhone. It is a Dutch auction with time credit. First, the seller announces a time credit fee rate. Next, each bidder purchases time credit and pays corresponding participation cost. Lastly, a Dutch auction...

This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is, each country has one major hub airport and some local...

Since the pension eligibility age started to rise in 2001, there had been a gap between the eligibility age for full pension benefits and the prevailing retirement age in Japan. To fill the gap, the government of Japan revised the Elderly Employment Stabilization Law (EESL): starting from 2006,...