We study price formation in securities markets, using the sequential trade framework of Glosten and Milgrom. This paper makes one basic methodological advance over previous research on sequential securities trading: we allow traders to choose from n trade sizes in a multi-period market, where n...

This paper studies how the trade size and the historical sequence of trades affect bid-ask spreads, investors’ trading strategies, and the market maker’s learning process in a multi-period economy. First, we show that there is a nonzero cut-off size below which informed traders never buy or...

Using recent extensive data of bilateral trade in manufacturing, we study the relations between trade flows, each country’s technological levels, and geographic barriers. Then, we calibrate the equilibrium of a general equilibrium model to explore how a Trans-Pacific Partnership affects...

This paper studies social choice correspondences assigning a set of choices to each pair consisting of a nonempty subset of the set of alternatives and a weak preference profile, which is called an extended social choice correspondence (ESCC). The ESCC satisfies unanimity if, when there is a...

This paper studies the effects of Trans-Pacific Partnership (TPP) on trade flows and welfare in a general equilibrium framework following the Eaton and Kortum (2002) model. Using comprehensive data including prices, wages, output, and bilateral trade in manufacturing for 38 countries including...

This paper studies the welfare effects of a preferential trade agreement (PTA) within a general equilibrium framework following Eaton and Kortum (2002) and conducts a comparative statics analysis of the equilibrium. The paper provides a closed-form analysis with no assumption of balanced trade...

This paper investigates empirically the relationship between firm size and production efficiency, and the relationship between firm size and the likelihood of paying bribes using firm-level data from Vietnam. Our analysis indicates that middle-sized firms’ production efficiencies tend to...

In Man and Takayama (2013) (henceforth MT) we show that many classical impossibility theorems follow from three simple and intuitive axioms on the social choice correspondence when the set of social alternatives is finite. This note extends the main theorem (Theorem 1) in MT to the case where...

This paper proposes a two-party spatial model of policy and valence issues for office-seeking candidates who face a two-stage electoral process with strategic voters. We study how the difference in valences among candidates affects the equilibrium outcomes when voters are strategic and...

This paper develops a hierarchical agency model of deposit insurance. The main purpose of the analysis is to propose a micro-founded model of deposit insurance schemes and study their effects on the behavior of depositors and the monitoring problem for a bank. This paper also characterizes a...