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The Feldstein–Horioka Puzzle or Paradox after 44 years: a fallacy of composition Jpn. Econ. Rev. (IF 0.776) Pub Date : 2024-04-01 Charles Yuji Horioka
The finding of Feldstein and Horioka (1980) that domestic saving and domestic investment are highly correlated across countries despite the rapid globalization and liberalization of financial markets in recent decades has been regarded as a Puzzle or Paradox. However, in this paper, we show that countries as a whole may not be able to transfer their capital abroad and that the Feldstein–Horioka Finding
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The role of nudge-based messages on the acceptability and download of COVID-19 contact tracing apps: survey experiments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2024-02-26 Hirofumi Kurokawa, Shusaku Sasaki, Fumio Ohtake
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Did the BOJ’s negative interest rate policy increase bank lending? Jpn. Econ. Rev. (IF 0.776) Pub Date : 2024-01-22 Hiroshi Gunji
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Minimax-regret treatment rules with many treatments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-11-13 Matthew A. Masten
Statistical treatment rules map data into treatment choices. Optimal treatment rules maximize social welfare. Although some finite sample results exist, it is generally difficult to prove that a particular treatment rule is optimal. This paper develops asymptotic and numerical results on minimax-regret treatment rules when there are many treatments. I first extend a result of Hirano and Porter (Econometrica
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Aggregate productivity slowdown and share of temporary workers Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-11-10 Nobuyuki Kanazawa
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Statistical decision theory respecting stochastic dominance Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-11-06 Charles F. Manski, Aleksey Tetenov
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Applications of Choquet expected utility to hypothesis testing with incompleteness Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-11-07 Hiroaki Kaido, Yi Zhang
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Treatment choice, mean square regret and partial identification Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-11-06 Toru Kitagawa, Sokbae Lee, Chen Qiu
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Bandwidth selection for treatment choice with binary outcomes Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-10-20 Takuya Ishihara
This study considers the treatment choice problem when the outcome variable is binary. We focus on statistical treatment rules that plug in fitted values from a nonparametric kernel regression, and show that the maximum regret can be calculated by maximizing over two parameters. Using this result, we propose a novel bandwidth selection method based on the minimax regret criterion. Finally, we perform
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Interim information and managerial risk taking in professional basketball Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-10-13 Wen-Jhan Jane
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Cashless payment methods and COVID-19: evidence from Japanese consumer panel data Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-10-05 Hiroshi Fujiki
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Inference on optimal treatment assignments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-09-27 Timothy B. Armstrong, Shu Shen
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Groups versus individuals, partial lying, and social image concern in a dice-rolling experiment Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-09-17 Yoshitaka Okano, Eiji Goto
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Economic effects of pension reform: applying the overlapping generations model to long-term nursing care Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-08-13 Takehiro Ito, Kazumitsu Sako
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Hideshi Itoh, President of the Japanese Economic Association 2022–2023 Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-08-03
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Strict robustness to incomplete information Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-06-21 Stephen Morris, Daisuke Oyama, Satoru Takahashi
We study a strict version of the notion of equilibrium robustness by Kajii and Morris (Econometrica 65:1283–1309, 1997) that allows for a larger class of incomplete information perturbations of a given complete information game, where with high probability, players believe that their payoffs are close to (but may be different from) those of the complete information game. We show that a strict monotone
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Overcoming problems of coordination and freeriding in a game with multiple public goods: dynamic contribution with information provision Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-06-02 Ai Takeuchi, Erika Seki
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Input price discrimination in endogenous competition mode: comment Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-05-22 Qing Hu, Shuxiao Chen
We correct the calculation in Choi and Lim (The Japanese Economic Review 74(2):301–330, 2023) and show that under input price discrimination, the asymmetric outcome that the inefficient retailer chooses Cournot competition and the efficient retailer chooses Bertrand competition never happens. Instead, Cournot competition is the equilibrium.
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What do contracts do to facilitate relationships? Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-05-10 Hideshi Itoh
I demonstrate that transacting parties may expend resources on ex ante contracting, which may not be legally enforceable, to help build and maintain their long-term relationships. I first introduce three legal concepts, namely scaffolding, managerial provisions, and formal relational contracts, which highlight the recent trend towards more detailed contracts. These concepts indicate that the role of
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Factor decomposition of changes in the income tax base Jpn. Econ. Rev. (IF 0.776) Pub Date : 2023-03-28 Taro Ohno, Junpei Sakamaki, Daizo Kojima, Tomotsugu Imahori
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Do hybrid auctions always give “the best of both worlds” ? An illustration from asymmetric Anglo–Dutch auctions Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-12-09 Daniel Marszalec
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Comparing behavior between a large sample of smart students and Japanese adults Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-11-25 Nobuyuki Hanaki, Keigo Inukai, Takehito Masuda, Yuta Shimodaira
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The adverse effect of competition on consumers under foreign competition Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-11-21 Junlin Chen, Jingyi Huang, Yue Yu, Chenhang Zeng
We examine undesirable competition in an asymmetric Cournot oligopoly under foreign competition and indirect taxation. We find that entry of inefficient domestic firms benefits consumers, while that of efficient foreign firms may hurt consumers when the number of foreign firms is relatively small. This result is different from that obtained in Dinda and Mukherjee (2014) which ignore foreign competition
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Input price discrimination and incentives for raising rivals’ costs Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-10-29 Chin-Sheng Chen
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Ambiguity and self-protection: evidence from social distancing under the COVID-19 pandemic Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-10-01 Daiki Kishishita, Hans H. Tung, Charlotte Wang
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Strategic delegation and tariff protection with network externalities Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-09-26 Kangsik Choi, Ki-Dong Lee
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Adverse selection and bounded rationality: an impossibility theorem Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-09-27 Takeshi Murooka, Takuro Yamashita
We consider an adverse selection environment between an informed seller and an uninformed buyer, where no trade occurs when all buyers are the standard Bayesian-rational type. The buyer may be a “behavioral” type in that he may take actions different from the rational type. We show that, for any incentive-feasible mechanism with any non-trivial trade, the buyer’s ex-ante expected payoff is strictly
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The effect of employer tenure on wages in Japan Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-08-31 Ayaka Nakamura
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Input price, bargaining power, and a multi-input-multi-product firm Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-08-25 Pei-Cyuan Shih, Yan-Shu Lin, Yen-Ju Lin
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Masao Ogaki, President of the Japanese Economic Association 2021–2022 Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-07-08
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Masao Ogaki, President of the Japanese Economic Association 2021–2022 Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-07-08
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Economics of the community mechanism Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-04-18 Masao Ogaki
This paper discusses the importance of the community mechanism that complements the market and power mechanisms in an economic system during an era of crisis, defined as a mechanism for resource allocation by which at least one person proposes voluntary cooperation, and the proposal is not rejected. While this community mechanism can function alongside homo economicus in win–win situations, it can
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Economics of the community mechanism Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-04-18 Masao Ogaki
This paper discusses the importance of the community mechanism that complements the market and power mechanisms in an economic system during an era of crisis, defined as a mechanism for resource allocation by which at least one person proposes voluntary cooperation, and the proposal is not rejected. While this community mechanism can function alongside homo economicus in win–win situations, it can
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Fumio Ohtake, President of the Japanese Economic Association 2020–2021 Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-04-18
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Fumio Ohtake, President of the Japanese Economic Association 2020–2021 Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-04-18
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Mari Tanaka awarded for the 2021 Japanese Economic Association award for young female researchers sponsored by the Nippon Life Insurance Company. Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-02-01 Haruko Noguchi
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High-frequency identification of monetary policy shocks in Japan Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-24 Hiroyuki Kubota, Mototsugu Shintani
We identify monetary policy shocks in Japan during the unconventional monetary policy period using high-frequency data for interest rate futures. Following the empirical strategy of Gürkaynak et al. (Int J Cent Bank 1: 55–93, 2005), we conduct an event-study analysis to estimate the effects of the monetary policy surprises on asset prices around the timing of policy announcements made by the Bank of
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High-frequency identification of monetary policy shocks in Japan Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-24 Hiroyuki Kubota, Mototsugu Shintani
We identify monetary policy shocks in Japan during the unconventional monetary policy period using high-frequency data for interest rate futures. Following the empirical strategy of Gürkaynak et al. (Int J Cent Bank 1: 55–93, 2005), we conduct an event-study analysis to estimate the effects of the monetary policy surprises on asset prices around the timing of policy announcements made by the Bank of
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The conflict between residents and tourists: on the variety-shifting effect of tourism growth Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-11 Takaaki Takahashi
This study examines the impacts of a rise in international tourism on the welfare of residents. We construct a simple model in which a home country accommodates tourists from a foreign country. We pay special attention to the fact that, in addition to the positive effect of raising wages, tourism growth has two negative effects. First, it replaces the production of residents’ consumption varieties
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The conflict between residents and tourists: on the variety-shifting effect of tourism growth Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-11 Takaaki Takahashi
This study examines the impacts of a rise in international tourism on the welfare of residents. We construct a simple model in which a home country accommodates tourists from a foreign country. We pay special attention to the fact that, in addition to the positive effect of raising wages, tourism growth has two negative effects. First, it replaces the production of residents’ consumption varieties
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Tourism infrastructure and the environment: how does environmental regulation affect welfare, tourism industry, and domestic wage inequality? Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-07 Takanori Shimizu, Hisayuki Okamoto
This study presents a general equilibrium model of a small open developing economy with pollution generated by the tourism industry. The national government issues emission permits and constructs tourism infrastructure for the tourism sector. We examine the effects of a stricter environmental regulation on welfare, production, and income distribution. If the elasticity of substitution in the tourism
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Tourism infrastructure and the environment: how does environmental regulation affect welfare, tourism industry, and domestic wage inequality? Jpn. Econ. Rev. (IF 0.776) Pub Date : 2022-01-07 Takanori Shimizu, Hisayuki Okamoto
This study presents a general equilibrium model of a small open developing economy with pollution generated by the tourism industry. The national government issues emission permits and constructs tourism infrastructure for the tourism sector. We examine the effects of a stricter environmental regulation on welfare, production, and income distribution. If the elasticity of substitution in the tourism
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Input Price Discrimination in Endogenous Competition Mode Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-12-01 Kangsik Choi, Seonyoung Lim
We analyze the endogenous choice of competition mode when asymmetric retailers engage in price discrimination and uniform pricing with upstream monopoly via a linear wholesale contract. In contrast to previous results, if the cost difference is sufficiently large between asymmetric retailers, choosing a price contract for the efficient retailer and choosing a quantity contract for the inefficient retailer
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Input Price Discrimination in Endogenous Competition Mode Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-12-01 Kangsik Choi, Seonyoung Lim
We analyze the endogenous choice of competition mode when asymmetric retailers engage in price discrimination and uniform pricing with upstream monopoly via a linear wholesale contract. In contrast to previous results, if the cost difference is sufficiently large between asymmetric retailers, choosing a price contract for the efficient retailer and choosing a quantity contract for the inefficient retailer
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Attributes needed for Japan’s central bank digital currency Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-11-18 Fujiki, Hiroshi
The issuance of central bank digital currencies became a real policy issue after the announcement of Facebook’s Libra. Which types of product attributes should central bank digital currencies have to be widely accepted? We answer this question by analyzing consumers’ acceptance of hypothetical payment methods. We used Japanese data from the 2019 Financial Literacy Survey to estimate a model of consumers’
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Attributes needed for Japan’s central bank digital currency Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-11-18 Fujiki, Hiroshi
The issuance of central bank digital currencies became a real policy issue after the announcement of Facebook’s Libra. Which types of product attributes should central bank digital currencies have to be widely accepted? We answer this question by analyzing consumers’ acceptance of hypothetical payment methods. We used Japanese data from the 2019 Financial Literacy Survey to estimate a model of consumers’
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Social security reform and welfare in a two sector model Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-19 Sen, Partha
A reform of a pay-as-you-go social security in a one sector model makes the pensioners worse off and the working generations better off in the period of the reform (in a dynamically efficient economy without altruism). The observed reluctance across all age groups to support such reforms is usually explained by the insurance properties of these schemes. I propose an alternative in a two sector setting
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Social security reform and welfare in a two sector model Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-19 Sen, Partha
A reform of a pay-as-you-go social security in a one sector model makes the pensioners worse off and the working generations better off in the period of the reform (in a dynamically efficient economy without altruism). The observed reluctance across all age groups to support such reforms is usually explained by the insurance properties of these schemes. I propose an alternative in a two sector setting
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Welfare economics of managing an epidemic: an exposition Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-18 Iwamoto, Yasushi
This paper reviews recent findings on the normative analysis of private and governmental countermeasures against infectious diseases, focusing on COVID-19. Based on a model that relates the economic activity to infectious disease epidemics, policies that maximize social welfare are considered. Lockdowns in many countries are measures that restrict economic activity over a wide area, and the economic
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Online-to-offline advertisements as field experiments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-18 Matsui, Akira, Moriwaki, Daisuke
Online advertisements have become one of today’s most widely used tools for enhancing businesses partly because of their compatibility with A/B testing. A/B testing allows sellers to find effective advertisement strategie,s such as ad creatives or segmentations. Even though several studies propose a technique to maximize the effect of an advertisement, there is insufficient comprehension of the customers’
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Welfare economics of managing an epidemic: an exposition Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-18 Iwamoto, Yasushi
This paper reviews recent findings on the normative analysis of private and governmental countermeasures against infectious diseases, focusing on COVID-19. Based on a model that relates the economic activity to infectious disease epidemics, policies that maximize social welfare are considered. Lockdowns in many countries are measures that restrict economic activity over a wide area, and the economic
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Online-to-offline advertisements as field experiments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-18 Matsui, Akira, Moriwaki, Daisuke
Online advertisements have become one of today’s most widely used tools for enhancing businesses partly because of their compatibility with A/B testing. A/B testing allows sellers to find effective advertisement strategie,s such as ad creatives or segmentations. Even though several studies propose a technique to maximize the effect of an advertisement, there is insufficient comprehension of the customers’
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Correction to: COVID‑19 and output in Japan. Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-14 Daisuke Fujii,Taisuke Nakata
[This corrects the article DOI: 10.1007/s42973-021-00098-4.].
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Job stress and mental health among social workers: evidence from a field experiment at a public employment support institution in Japan Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-11 Ishikawa, Yumi, Kohara, Miki, Nushimoto, Aya
This study examines the causal effects of job stress on workers’ mental health. Evaluating the causal relationship between job stress and workers’ mental health is challenging due to an endogeneity problem, as heavy workloads and thus job stress are likely assigned to workers in good mental health condition. Endogeneity can also be problematic due to workers’ unobserved heterogeneity, such as personal
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Distance to news: how social media information affects bribe-giving in India Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-11 Goto, Jun, Kurosaki, Takashi, Mori, Yuko
While recent empirical evidence reveals some effective interventions in preventing corruption among bureaucrats and politicians, there has been little discussion on how to prevent the bribe-giving behavior of ordinary citizens. This paper investigates the role of social media information in influencing the supply of bribes by citizens instead of the demand side. We, therefore, developed and published
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Job stress and mental health among social workers: evidence from a field experiment at a public employment support institution in Japan Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-11 Ishikawa, Yumi, Kohara, Miki, Nushimoto, Aya
This study examines the causal effects of job stress on workers’ mental health. Evaluating the causal relationship between job stress and workers’ mental health is challenging due to an endogeneity problem, as heavy workloads and thus job stress are likely assigned to workers in good mental health condition. Endogeneity can also be problematic due to workers’ unobserved heterogeneity, such as personal
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Distance to news: how social media information affects bribe-giving in India Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-11 Goto, Jun, Kurosaki, Takashi, Mori, Yuko
While recent empirical evidence reveals some effective interventions in preventing corruption among bureaucrats and politicians, there has been little discussion on how to prevent the bribe-giving behavior of ordinary citizens. This paper investigates the role of social media information in influencing the supply of bribes by citizens instead of the demand side. We, therefore, developed and published
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Toward market design in practice: a progress report Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-04 Kojima, Fuhito, Odahara, Hiroaki
In recent years, many developments have been made in matching theory and its applications to market design. This paper surveys some selected topics from this research area and describe our own work. We also describe the newly established University of Tokyo Market Design Center (UTMD), which works as a vehicle for practical implementation.
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Toward market design in practice: a progress report Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-04 Kojima, Fuhito, Odahara, Hiroaki
In recent years, many developments have been made in matching theory and its applications to market design. This paper surveys some selected topics from this research area and describe our own work. We also describe the newly established University of Tokyo Market Design Center (UTMD), which works as a vehicle for practical implementation.
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Introduction to the Special Issue: lab and field experiments Jpn. Econ. Rev. (IF 0.776) Pub Date : 2021-10-04 Nobuyuki Hanaki,Kazuhito Ogawa