Atsushi Maki

An analysis of under-reporting for micro-data sets: The misreporting or double-hurdle model

Abstract This paper analyzes under-reporting through the two extended tobit models; p-tobit and double-hurdle models. The empirical results clarify the characteristics of under-reporting; misreporting plays an important role in under-reporting.

A Nash equilibrium solution in an oligopoly market: The search for Nash equilibrium solutions with replicator equations derived from the gradient dynamics of a simplex algorithm

The present analysis applies continuous time replicator dynamics to the analysis of oligopoly markets. In the present paper, we discuss continuous game problems in which decision-making variables for each player are bounded on a simplex by equalities and non-negative constraints. Several types of problems are considered under conditions of normalized constraints and non-negative constraints. These problems can be classified into two types based on their constraints. For one type, the simplex constraint applies to the variables for each player independently, such as in a product allocation problem. For the other type, the simplex constraint applies to interference among all players, creating a market share problem. In the present paper, we consider a game problem under the constraints of allocation of product and market share simultaneously. We assume that a Nash equilibrium solution can be applied and derive the gradient system dynamics that attain the Nash equilibrium solution without violating the simplex constraints. Models assume that three or more firms exist in a market. Firms behave to maximize their profits, as defined by the difference between their sales and cost functions with conjectural variations. The effectiveness of the derived dynamics is demonstrated using simple data. The present approach facilitates understanding the process of attaining equilibrium in an oligopoly market.

How high consumer prices are in Japan!1

Abstract This paper focuses on the constant-utility price index in Japan based on economic theory. Our empirical observation confirms the theoretical foundation for our intuition that Japan endures wealth without prosperity partly because of expensive consumer goods and services. Japanese consumers purchase commodities and services at prices more than 30 percent higher than in the US, the UK, France and Germany. To reduce the price gap between domestic and international markets, deregulation of domestic markets is necessary.

An empirical test of homogeneity and symmetry in a demand system with taste changes

Abstract The objectives of this paper are twofold: to examine the law of demand and to examine the possibility of changing demand empirically in the era of high economic growth of the Japanese economy. The homogeneity and symmetry conditions of the Slutsky equation are important in testing the correspondence between demand functions and utility functions. These restrictions are tested in this paper. It is found that homogeneity, symmetry, and the joint restrictions of homogeneity and symmetry, are empirically supported by a consistent data set based on the National Accounts when taste changes are introduced. In Japan, the period of observation includes the era of high economic growth during the 1960s and is thus an especially appropriate period for observing a dynamic shift, specified as a time trend, in consumption patterns.

Savings and portfolio behavior of Japanese households: Effects of purchasing housing and preparation for retirement

Abstract The paper focuses on certain aspects of the Japanese economic system which compel Japanese households to maintain a high rate of savings. The influence of asset accumulation and portfolio choices of households is analyzed in terms of the motive to purchase future goods, specifically the purchase of housing, preparation for retirement and leaving a bequest. In order to lower the savings rate and stimulate domestic demand for purposes of reducing external trade imbalances it is necessary to depress land price increases in urban areas and enhance welfare programs for retirees, especially in terms of nursing assistance subsidies for the aged.

Lifecycle simulation based on the feedback system and the choice of switching time for the period model

The present paper has two objectives: (1) The construction of a feedback system for the orthodox lifecycle model. The feedback system is different from the open loop model because it includes the controller from the state variables to input variables through the relationship between input and state variables at each point of time. (2) To solve the optimal control problem including the choice of the switching time for the period difference equation model. This corresponds to the economic problem endogenously determining the period in changing the tenure choice from rental to owner tenure.

The robustness of a Nash equilibrium simulation model: Game-theoretic approach using variable metric projection method

This paper proposes a Nash equilibrium model that applies continuous time replicator dynamics to the analysis of oligopoly markets. The robustness of the proposed simple Nash equilibrium model under the simultaneous constraints of allocation of product and market share using a simulation method to derive an optimal solution for production decisions by rival firms in oligopoly markets is tested by changing profit and cost function parameters, as well as the initial production values and market shares of the firms examined in this study. The effects of differences in conjectural variation and initial allocation of market share on the convergent values are considered, particularly in the case of corner solutions. This approach facilitates the understanding of the robustness of attaining equilibrium in an oligopoly market.

The agricultural sector in Thailand's middle-income stage

This paper focuses on the Philippines and Vietnam where poverty alleviation programs play a critical role in maintaining minimal living standards, making it essential to understand how impoverished households make ends meet through in-kind transactions. Using Engel curves including and excluding in-kind consumption, we found that when we include inkind consumption in consumption expenditure, the Engel curve is monotonic downward sloping in Vietnam and in the Philippines. On the other hand, when we exclude in-kind consumption from consumption categories, the Engel curve was hump-shaped. Contrary to Engel’s Law, we find that the Engel curve is upward sloping in very poor households, meaning that food expenditures as a percentage of income increases with income. Our findings are also suggestive about the different effects of in-kind consumption depending on the stages of economic development that may be relevant in terms of economic and social policies in developing countries especially those targeting improvement in the standard of living for poor households.

Engel's Law in Vietnam and the Philippines: Effects of in-kind consumption on inequality and poverty

This paper focuses on the Philippines and Vietnam where poverty alleviation programs play a critical role in maintaining minimal living standards, making it essential to understand how impoverished households make ends meet through in-kind transactions. Using Engel curves including and excluding in-kind consumption, we found that when we include inkind consumption in consumption expenditure, the Engel curve is monotonic downward sloping in Vietnam and in the Philippines. On the other hand, when we exclude in-kind consumption from consumption categories, the Engel curve was hump-shaped. Contrary to Engel’s Law, we find that the Engel curve is upward sloping in very poor households, meaning that food expenditures as a percentage of income increases with income. Our findings are also suggestive about the different effects of in-kind consumption depending on the stages of economic development that may be relevant in terms of economic and social policies in developing countries especially those targeting improvement in the standard of living for poor households.

An application of the continuous time replicator dynamic to economics

The present analysis is an application of the continuous time replicator dynamic to economics. Three types of problems are considered under conditions of a normalized constraint and non-negative constrains. The story of the following models is as follows. There are three or more corporations in a market. They behave so as to maximize their profits defined by the difference between their sales and cost functions with conjectural variations. In economics, there are many models concerning conjectural variation and Nash equilibrium. The present approach may be useful to examine the process of reaching equilibrium.