Which labor market specification is better able to describe inflation dynamics, a widely-used sticky wage model or a recently-investigated labor market search model? Using a Bayesian likelihood approach, we estimate these two models with Japan’s data. This paper shows that the labor market...

The literature gives evidence that term spreads help predict output growth, inflation, and interest rates. This paper integrates and explains these predictability results by using an affine term structure model with observable macroeconomic factors. The results suggest that consumers are willing...

Traditionally employees in Japanese companies had self-initiative work style, on the basis of the peace of mind offered by job security. However, today, Japanese companies cannot guarantee the lifetime employment any more. As a result, in order to support individual career development,...