We advance a model of the tradable permit market and derive a pricing formula for contingent claims traded in the market in a general equilibrium framework. It is shown that prices of such contingent claims exhibit significantly different properties from those in the ordinary financial markets....

As real estate and financial asset markets are now merging, we need a theoretical foundation for analysis of real estate investments in conjunction with both domestic and international financial investments. This study presents a methodology for evaluating real estate values. Specifically, we...

This study is a first attempt of investigating a theory of directional pricing. Directional pricing is defined as price or rate designs that apply different prices to selling and buying the concerned goods. A typical example would be rate schedules in the feed-in-tariff (FIT) policy for...

In recent times, greenhouse gas (GHG) reduction targets have been frequently discussed in climate-change policy debates. Computable energy-economic models have played a significant role in the process of formulating policy goals. However, these models are very complicated and contain many ad hoc...

This article develops a model of optimal lottery design for public financing, on the assumption that economic agents view buying lottery tickets as a form of entertainment. Given that lotteries are optimally designed, it offers two findings: (1) the fundraising potential of a lottery is...