{"title":"When do we Start? Pension reform in ageing Japan","authors":"Sagiri Kitao","doi":"10.1111/jere.12135","DOIUrl":"10.1111/jere.12135","url":null,"abstract":"<p>Japan is faced with rapid demographic ageing and fiscal challenges. This paper simulates pension reform to reduce the replacement rate by 20% and raise the retirement age by 3 years gradually over a 30-year period. We consider three scenarios with different points in time to initiate reform in 2020, 2030 and 2040, respectively. A delay would suppress economic activities, lowering output by up to 4% and raising tax burden by more than 8% of total consumption. Delaying reform implies a transfer of costs of demographic ageing to the young and deteriorates the welfare of future generations by up to 3% in terms of consumption equivalence.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2017-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12135","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127419312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Disability and Economy: A Game Theoretic Approach","authors":"Akihiko Matsui","doi":"10.1111/jere.12137","DOIUrl":"10.1111/jere.12137","url":null,"abstract":"<p>This paper takes a game theoretic approach to disability-related issues by constructing a model that studies the case of hereditary deafness on Martha's Vineyard Island, USA from the seventeenth century to the early years of twentieth, where the island community adjusted itself to the hereditary deafness so that it was not treated as a disability. The model of the present paper has two stages. First of all, there are two types of continua of agents, the deaf and the non-deaf. In the first stage, the non-deaf agents become either bilinguals or monolinguals. In the second stage, agents are classified into deaf people, bilinguals and monolinguals. They are then randomly matched to form a trio to play a three-person bargaining game with infinite horizon, random proposers and language constraints. Two bargaining games are considered. The first one is a majority bargaining game where only two out of three can agree to implement a bargaining outcome. The second one is a unanimity bargaining game where all three agents are required to reach an agreement. The majority game exhibits strategic complementarity, while the unanimity game exhibits strategic substitutability. This paper also takes an inductive approach to examine how prejudice against people with disability may emerge.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2017-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12137","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116752797","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Call for papers: Special Issue – Marketing and Industrial Organization","authors":"","doi":"10.1111/jere.12138","DOIUrl":"https://doi.org/10.1111/jere.12138","url":null,"abstract":"","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2017-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12138","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"137686052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Focused Information Criterion for Series Estimation in Partially Linear Models","authors":"Naoya Sueishi, Arihiro Yoshimura","doi":"10.1111/jere.12139","DOIUrl":"10.1111/jere.12139","url":null,"abstract":"<p>This paper proposes a focused information criterion for variable selection in partially linear models. Our criterion is designed to select an optimal model for estimating a focus parameter, which is a parameter of interest. We estimate the model using the series method and jointly select the variables in the linear part and the series length in the nonparametric part. A Monte Carlo simulation shows that the proposed focused information criterion successfully selects the model that has a relatively small mean squared error of the estimator for the focus parameter.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2017-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12139","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77236872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Family Policies and Female Employment in Japan","authors":"Shintaro Yamaguchi","doi":"10.1111/jere.12136","DOIUrl":"https://doi.org/10.1111/jere.12136","url":null,"abstract":"<p>This paper discusses how childcare and parental leave policies affect female employment by reviewing the international evidence and recent papers on Japan. These papers estimate causal effects of policies by exploiting policy changes, which is a more credible identification strategy than those applied in earlier observational studies. The literature on parental leave finds that a more generous leave package tends to delay mothers’ return to work, but it does not have detrimental effects on maternal labour supply in the medium to long run. Some papers also find that provision of job protection for around 1 year can increase maternal employment, but longer job protection has little additional effects. The literature on childcare policies finds that maternal employment does not necessarily increase, because the expansion of childcare may crowd out informal childcare arrangements, such as care provided by grandparents. Findings by recent papers on Japan are largely consistent with the international evidence.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2017-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12136","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"92194024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do Bank Loans To Financially Distressed Firms Lead To Innovation?","authors":"Minjung Kim, Jungsoo Park","doi":"10.1111/jere.12131","DOIUrl":"10.1111/jere.12131","url":null,"abstract":"This study scrutinizes the association between a bank loan to a financially distressed firm and technological innovation. Using probit model estimations based on a comprehensive Korean manufacturing firm-level data set on innovation and bank loans, we first find that a bank loan to a troubled firm with a weak incentive system has no or little effect on innovation. Second, beneficial effects on innovation are observed when the firm has a strong incentive-based pay system. Third, financially distressed firms with strong incentive systems pursue product innovation rather than process innovation. Finally, the innovation performance of these firms strengthens with more stable financing.","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2016-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12131","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133821105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Considering Collective Choice: The Route 328 Problem in Kodaira City","authors":"Toyotaka Sakai","doi":"10.1111/jere.12115","DOIUrl":"https://doi.org/10.1111/jere.12115","url":null,"abstract":"<p>A local referendum was held in Kodaira City, Tokyo on 26 May 2013, but the voting box remained sealed. This was because the voter turnout did not reach the 50% threshold for opening the box. Based on the Rousseauian view on voting, we argue that this hurdle is unjustifiable and further question the adequacy of the local referendum even without such a hurdle. Finally, we examine the use of economic mechanisms for this type of collective choice instead of voting.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2016-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12115","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"92292411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Janghee Cho, Hyunbae Chun, Hongjun Kim, Yoonsoo Lee
{"title":"Job Creation and Destruction: New Evidence on the Role of Small Versus Young Firms in Korea","authors":"Janghee Cho, Hyunbae Chun, Hongjun Kim, Yoonsoo Lee","doi":"10.1111/jere.12133","DOIUrl":"10.1111/jere.12133","url":null,"abstract":"<p>Using the Census on Establishments data in Korea, the present study revisits the role of firm age and size to explain aggregate employment dynamics. We confirm the finding of Haltiwanger <i>et al</i>. that no systematic inverse relationship exists between net job growth and firm size once firm age is controlled for. We find that small businesses are driving forces of aggregate employment growth but that such high growth is mostly driven by the entry of very small firms, which is offset by job destructions of a similar magnitude. Moreover, entrepreneurial activity occurs among very small firms, whereas large start-ups are rarely observed.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2016-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12133","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121141099","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Dynamic Relationship Between Corruption–Inflation: Evidence From Panel Vector Autoregression","authors":"Seifallah Sassi, Amira Gasmi","doi":"10.1111/jere.12134","DOIUrl":"10.1111/jere.12134","url":null,"abstract":"<p>This paper aims to explain the mixed causality nexus between corruption and inflation. For that, we apply a panel vector autoregression model on a large sample of 180 countries over the period 1996–2014. Using two corruption indexes and subsample estimations, results provide evidence that the inflation–corruption nexus is bidirectional. The causal effect is more important from corruption to inflation. Interactions remain significant but heterogeneous across subsamples with different income levels. The corruption effect is persistent only in low–middle income economies and its adverse effect on inflation is weaker in high-income economies. The two-way relationship between inflation and corruption reflects the inability to control inflation and the situation of the poverty trap in some countries.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2016-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12134","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126713678","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Aggregate and Firm-level Volatility in the Japanese Economy","authors":"Young Gak Kim, Hyeog Ug Kwon","doi":"10.1111/jere.12132","DOIUrl":"10.1111/jere.12132","url":null,"abstract":"<p>In this paper, we investigate the volatility of sales at the firm and the aggregate level using the longitudinal data set of the <i>Financial Statements Statistics of Corporations</i> (FSSC). The main findings are as follows. First, firm-level volatility decreased until the mid-1990s, but then increased again. Second, aggregate-level volatility steadily decreased until the mid-1990s and remained low after that. Third, decomposing the total variance of the growth rate of aggregated sales, we find that the divergence between firm-level and aggregate-level volatility is caused by the drastic decline and subsequent low level of the covariance of sales growth between different firms and the increase in individual firms' sales volatility.</p>","PeriodicalId":45642,"journal":{"name":"Japanese Economic Review","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2016-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1111/jere.12132","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"113938300","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}