This study develops a simple forecasting model using Japanese prefectural data. The Markov chain, known as a stochastic model, corresponds to a first-order vector auto-regressive (VAR) model. If the transition probability matrix can be appropriately estimated, a forecasting model using the...

This study develops a multi-region computable general equilibrium model (CGE model), which analyzes the influence on a regional economy of a reduction in the transportation cost. The reduction in transportation cost is, in a word, reduction of the logistics cost. Logistic competition has...