2016 Fiscal Year Annual Research Report
Novel approaches to analysis of welfare impact of industrial policies
| Project/Area Number |
26705003
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| Research Institution | The University of Tokyo |
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Principal Investigator |
ファビンガー ミハル 東京大学, 経済学研究科(研究院), 講師 (00715998)
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| Project Period (FY) |
2014-04-01 – 2018-03-31
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| Keywords | 租税負担 / 為替レート パススルー / ミクロ経済学 |
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| Outline of Annual Research Achievements |
The purpose of this project is to explore the implications of realistic properties of demand and supply curves that have not been previously studied due to a lack of empirical data. As larger and more detailed datasets are becoming available due to falling costs of information technology, it becomes crucial to understand the predictions of economic models that incorporate the shapes of demand and supply curves consistent with new empirical findings. Our research agenda involves (1) a novel, flexible approach to analyzing economic equilibria involving generic demand curves and cost curves, (2) a generalization to a very general specification of taxes, which may involve technological or verification cost associated with tax collection, (3) an investigation of the social impact of price discrimination by firms, and (4) generalization of our approach to dynamic settings. This broad research agenda has lead to several completed and partially completed research papers. The completed papers are "The Average-Marginal Relationship and Tractable Equilibrium Forms" in collaboration with Glen Weyl of Microsoft Research, New York and "Multi-Dimensional Pass-Through, Incidence, and the Welfare Burden of Taxation in Oligopoly" in collaboration with Takanori Adachi of Nagoya University.
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| Current Status of Research Progress |
Current Status of Research Progress
1: Research has progressed more than it was originally planned.
Reason
We continue to make progress on the project. An encouraging recent development was the paper "Multi-Dimensional Pass-Through, Incidence, and the Welfare Burden of Taxation in Oligopoly", in which we found that the pass-through framework may be generalized to many other types of taxes and is therefore very broadly applicable.
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| Strategy for Future Research Activity |
We plan to present our results at conferences, meetings, and universities, including the annual meeting of the International Association for Applied Econometrics, the Asia-Pacific Trade Seminars, and the annual meeting of the Japanese Economic Association.
We plan to continue to develop the empirical side of the agenda. We will be taking advantage of recent developments in computer science, especially of deep learning, which is very well suited for processing economically relevant information in large datasets.
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| Causes of Carryover |
In order to take advantage of recent advances in computer science (deep learning), it is necessary to use GPUs for computing. The new generation of GPUs (Nvidia Pascal architecture) is significantly more powerful than previous generations, and for this reason it was optimal to wait until the second quarter of year 2017 to purchase these GPUs, instead of buying more old GPUs.
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| Expenditure Plan for Carryover Budget |
Most of the 2017 budget will be spent on these powerful GPUs.
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