We develop a theoretical framework to characterize strategic behavior in sequential markets under imperfect competition and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the model predictions using microdata from the Iberian...

This paper analyzes "attribute-based regulations," in which regulatory compliance depends upon some secondary attribute that is not the intended target of the regulation. For example, in many countries, fuel-economy standards mandate that vehicles have a certain fuel economy, but heavier or...

Using a linear complementarity approach, we simulate the Japanese wholesale electricity market as a transmission-constrained Cournot market. Following Hobbs (2001), our model adopts the Cournot assumption in the energy market and the Bertrand assumption in the transmission market. The Bertrand...

In studies on the liberalization of Japanese electricity markets, simulations targeting whole areas of liberalization have been conducted. However, new entries have been very rare except in the area of commercial demand for extra-high voltage supply. In this paper we conduct a simulation...

In recent years there has been growing discussion regarding market designs of emissions trading. This paper examines a model in which emissions trading is introduced in the oligopolistic electricity market, which comprises both forward contracts and spot transactions. In particular we...

Exercise of market power by dominant generators is recognized as a serious issue in restructured wholesale electricity markets. Oligopolistic generators that participate in the electricity market on a nationwide scale could act strategically by taking into account the limited capacity of...

To quantify the impacts of immigration on the Japanese economy, we present a large-scale numerical dynamic equilibrium model with OLG and a total of 16 countries and regions, both those that are industrialized including Japan, the U.S. and EU, and developing countries China, Brazil, the...

We investigate the effect of close customer relationships on small firms' provision of trade credit during the 2001-2003 recession in Japan. Many studies argue that close customer relationships are costly for suppliers because when their main customer has a high proportion of the firm's total...

This paper applies the job creation (JC)/ destruction (JD) method to the micro data of Japanese manufacturing firms and provides a bird's eye portrait of the dynamism of globalizing firms in terms of domestic employment, domestic establishments, domestic affiliates, and trade. It examines gross...

After the Great East Japan Earthquake and the subsequent nuclear accident, nuclear power stations no longer can be presumed to be perfectly safe and thus hardly can be allowed to restart in Japan. In this study, we develop a nine-region spatial equilibrium model of the Japanese power market and...