This study empirically investigates whether the tax differentials between home and host countries differently affect multinationals' foreign investment and profit shifting decisions under contrasting international tax systems. In particular,we compare these differential tax effects between...

In this article, I test both the real and the financial frictions in the Japanese firm investments using structural approach. The real represents the nonconvex capital adjustment costs, and the financial means the financing constraints. These two factors have been studied for a long time, but...

This study explores the characteristics of Japan's dual labor market. I identify these characteristics by analyzing the labor market stocks and flows using data from the Japanese Labour Force Survey and the Monthly Labour Survey. To control for demographic factors, I perform the analysis at both...

A perceptual gap between banks and firms exists in Japan, preventing the credit channel of monetary policy. Banks believe that bankable customers are scarce, while firms believe that banks do not issue loans without collateral or guarantees. To explain this gap, I focus on the dispersion in the...

What role do the intensive and extensive margins of capital and labor play in macroeconomic fluctuations? To answer this question, we construct a real business cycle model that considers both intensive and extensive margins of capital and labor. While the importance of these two margins in terms...