Koichi Yamaura

Computable general equilibrium analyses of global economic impacts and adaptation for climate change: the case of tropical cyclones

Computable general equilibrium models have been widely used for simulating global warming and evaluating economic damages caused by climate change. However, to date little research has focused on the economic consequences incurred across several industry sectors at a global level. This article uses the evaluation model for environmental damage and adaptation (EMEDA) to simulate direct economic damages caused by tropical cyclones and losses that are offset through growth in other sectors to measure the global economic impacts arising from climate change. Simulated results by EMEDA indicate that: 1) several regions experience economic growth, with four regions offsetting economic damages in the primary industry sector whilst the other regions increase their damages; 2) seven regions show economic growth whilst only North America neutralises damage in their secondary sectors, with the other regions revealing more severe losses; 3) several regions are able to offset their tertiary sector losses yet the other regions show an increase in damages; 4) the equivalent variation in all regions except East Asia decreases as temperature increases.

Estimating the effect of monopsony power on elasticity estimates

ABSTRACT Love and Shumway (1994) developed a nonparametric deterministic test for monopsony market power using a normalized quadratic restricted cost function with one input for which the firm has potential market power. This research examines monopsony power using Lau’s Hessian identity relationships based on the empirical properties of duality theory. Lau’s Hessian identity shows the Hessian matrices are equal under pure competition using an unrestricted profit function, restricted profit function and production function approach. We examine how market power changes in the monopsony case using Lau’s Hessian identity relationships. Results show that there is a difference between the unrestricted and restricted profit function results under monopsony power. The important implication is that if an input or output is potentially in a market subject to market power, that input or output should be modelled as a fixed input or output to correctly recover the underlying technology.

Analysis of Tourism Demand Model Across European Source Countries

Abstract We estimate a linear approximation almost ideal demand system model for European tourism. Tourist source countries are Germany and UK. German and UK tourists travel to Euro countries and non-Euro countries. Euro countries are France, Italy, and Austria, and non-Euro countries are Switzerland, Denmark, and Poland. We derive income and price elasticities of tourism demand. British tourists are more sensitive to prices among Euro host countries than German tourists possibly due to transaction costs. Germans substitute between Euro host countries but non-Euro host countries are both substitutes and compliments for German tourists.