| Budget Amount *help |
¥1,400,000 (Direct Cost: ¥1,400,000)
Fiscal Year 1999: ¥700,000 (Direct Cost: ¥700,000)
Fiscal Year 1998: ¥700,000 (Direct Cost: ¥700,000)
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| Research Abstract |
The results obtained in this research project may be summarized as follows :
1.Indeterminacy and complex behavior of the dynamic economies with imperfect markets :
In order to clarify the policy effects in dynamic, monopolistically competitive economies, I have first tried to investigate the dynamic behavior of economies with imperfect markets. In Articles #2 and #4 (see REFERENCES), I derive the conditions under which indeterminacy of equilibrium holds in two sector models of endogenous growth with or without social increasing returns. These papers demonstrate that the presence of social increasing, which has been considered a necessary condition for generating indeterminacy, may not be required to hold indeterminacy in two-sector models.
In Article #3, I explored some economic implications of indeterminacy of equilibrium in growth models.
2.Optimal policies in dynamic economies with imperfect competition.
Based on research results mentioned above, I have inspected various policy effects i
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n dynamic economies with imperfect competition. Article #1 investigated the optimal patent policy in an endogenously growing economy with R&D investment. I (with co-authors, Koichi Futagami and Ysushi Ohkusa) demonstrated that there exists a finite, welfare maximizing patent length so that unlimited patent protection may be harmful from the social welfare viewpoint. In Article #6, I studied the dynamic optimal taxation under increasing returns. The main results of this study show that capital income taxation should be negative in the steady state. However, it is also shown that this conclusion is sensitive to the policy rule (i.e. open-loop vs. feedback) adopted by the fiscal authority.
Finally, Article #5 studies growth and welfare effects of money supply policy in an overlapping generation's economy. I (and co-author, Akihisa Shibata) analyzed the presence of Parato improving monetary policy under alternative policy rules. This paper also demonstrated that indeterminacy of equilibria might exist if money growth is endogenously determined according to the government budget constraint. Less
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