Exploiting theoretical implications for saving motives under uncertainty proposed by Epstein (1980), this paper empirically examines which motive is more dominant in aggregate household savings in Japan, precautionary savings or savings as waiting options. The former motive is driven by the...

This paper surveys the recent development of empirical and theoretical researches on incomplete markets, pointing out the following aspects. First, the theoretical study in this field is motivated by empirical findings of both asset pricing anomalies and heterogeneous behavior among economic...

This paper attempts to view financial crises as the failure of arbitrage among financial markets, and takes the "Japan premium" phenomenon observed in offshore money markets as an important example in favor of this view. In addition, we reconsider, from this perspective, the open market...