We examine macroeconomic stability of a monetary economy with habit formation in consumption. We assume that monetary authority controls the rate of nominal interest in response to inflation and output gap. We show that in the presence of habit persistence not only active but also passive...

This paper derives a preemptive equilibrium in strategic investment in alternative projects. The problem is formulated in a real options model with a multidimensional state variable that represents project-specific uncertainty. The proposed method enables us to evaluate the value of potential...

Transport modal choice is considered to be influenced by natural environmental change and transport network improvement. This paper reveals how these impacts affect individualsf decisions on selecting transport mode under an extension plan of Osaka Monorail Loop-line. To estimate these impacts,...

The Environmental Kuznets Curve (EKC) hypothesis proposes that there is an inverse-U-shape relationship between environmental degradation and per capita income. This evidence has been manifested to be existed in most air pollutants and several water pollutants by estimating on cross-country...

This note determines a sufficient condition on (von Neumann-Morgenstern) utility functions to preserve (reserve) comparative risk aversion under general background risks. Our condition is weaker than the one determined by Nachman (1982, Journal of Economic Theory). Nachmanfs condition requires...

I estimated inter-brand cigarette demands with nicotine, tar content and policy event information in Japan during 1950-84. The demand for all brands increased but the demand for plain (non-filter) brands decreased due to the dissemination ofgA Note about Health Damage from Smoking h in 1964. The...

The Amami Islands are located 380 kilometers southwest of Japan proper. These islands have two economic features: they are islands that many tourists visit because of their natural resources, and they are an undeveloped area where the central government of Japan provides large fiscal subsidies....

This paper studies sustainability of economic growth considering the risk of natural disasters caused by pollution in an endogenous growth model with physical and human capital accumulation. We consider an environmental tax policy, and show that economic growth is sustainable only if the tax...

This paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to...

I construct a model of a dynamic economy in which the government collects taxes and injects them into banksf capitals for stabilization of financial system. In theoretical part, I derive loan demand and supply functions from dynamic optimizing problems of households and banks. Carrying out a...