Authorship：Corresponding author   Language：Japanese   Publishing type：Research paper (scientific journal)  

DOI： 10.1007/s10797-019-09533-0

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Scopus

Authorship：Corresponding author   Language：English   Publishing type：Research paper (scientific journal)   Publisher：ELSEVIER SCIENCE BV  

This study examines the optimal fiscal policy in a stochastic endogenous growth model with private and public capital. The government is willing to actualize a socially optimal equilibrium using a lump-sum tax and government debt linked to public investments, subject to the budget constraint under the golden rule of public finance. A socially optimal fiscal policy states that a deterministic rate of return on government bonds sets the marginal product of public capital. Moreover, public investments optimally adjust the ratio of private capital to public capital to equate the rates of return on such capital. The presence of stochastic disturbances results in a disparity between the optimal marginal products of the two types of capital, as reported in previous empirical studies. This disparity significantly affects the socially optimal growth rate in response to investment risk. (C) 2016 Elsevier Inc. All rights reserved.

DOI： 10.1016/j.jmacro.2016.04.006

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Scopus

Language：English   Publishing type：Research paper (scientific journal)   Publisher：WILEY  

The welfare effects of capital market integration are examined under a model of tax competition with two asymmetric countries. The asymmetry is expressed through the labour market: one country has a perfect labour market whereas the other country's labour market is unionized. Our results indicate that the welfare effects of capital market integration differ depending on whether governments are active or passive in attracting capital. In the absence of active governments, capital market integration benefits the country with a competitive labour market whereas it harms the unionized country. Capital market integration benefits both countries if governments are active and compete for mobile capital using taxes/subsidies.

DOI： 10.1111/caje.12191

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Scopus

Authorship：Corresponding author   Language：English   Publishing type：Research paper (scientific journal)  

Authorship：Lead author,　Corresponding author   Language：English   Publishing type：Research paper (scientific journal)  

DOI： https://doi.org/10.1016/j.jpubeco.2010.06.019

Language：English   Publishing type：Research paper (scientific journal)   Publisher：ACADEMIC PRESS INC ELSEVIER SCIENCE  

We introduce a labor market imperfection into the capital tax competition literature to study the equilibrium tax formulae and their efficiency in the presence of unemployment. Since we allow for labor market imperfection, the standard conclusions of the tax competition literature would be generalized in the case of non-full employment. Our first result shows that even when head taxes on immobile residents are available, the optimal capital tax rate for jurisdictional governments is not zero. Our second finding is that decentralized equilibrium might be characterized by the overprovision of local public goods when the labor market is imperfect. (c) 2006 Elsevier Inc. All rights reserved.

DOI： 10.1016/j.jue.2005.07.002

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Scopus

Language：English   Publishing type：Research paper (scientific journal)   Publisher：Journal of Economics/ Zeitschrift fur Nationalokonomie  

This paper examines intergenerational welfare effects of public investment financed by factor income taxes in a perpetual-youth overlapping generations model. With elastic labor supply, our analysis shows that long-run employment increases as the tax rate on capital income increases. The positive long-run effect of capital income taxation on employment weakens the negative growth effect of tax distortion. In contrast, the long-run employment might decrease as the tax rate on labor income increases. Hence, the negative long-run effect of labor income taxation on employment strengthens the negative growth effect due to the tax distortion. Finally, this paper reveals that older people with more financial wealth suffer more significant welfare loss from the increased tax on each capital and labor income than younger people if the increased tax impedes economic growth. Furthermore, the increased tax harms the younger generations more than the older generations at the aggregate level because they have a larger population than the older people. However, the negative welfare effects of labor income taxation are stronger than those of capital income taxation because of the negative effect of labor income taxation on employment, which leads to a lower equilibrium growth rate.

DOI： 10.1007/s00712-024-00875-w

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Scopus

Authorship：Corresponding author   Language：English   Publishing type：Research paper (scientific journal)   Publisher：Journal of Macroeconomics  

Public investment is a central issue in the dynamic analyses of fiscal policy and economic growth. Debt financing for public investment and its effects have recently received great attention because interest rates have been low, almost invariably remaining below economic growth rates. This paper presents examination of the effects of debt-financed public investment subject to a simple fiscal rule in an overlapping generations model with public capital. This topic includes capital budgeting and the debt–deficit criterion of the Maastricht treaty. We show herein that debt financing for public investment enhances economic growth if an economy is dynamically inefficient and if public capital has a sufficiently large productivity effect. Moreover, it reduces economic growth rates in a dynamically efficient economy. Debt and growth can have a monotonic or non-monotonic relation, depending on the steady-state interest rate, growth rate, and productivity effect of public investment. The findings indicate that debt–growth relations match with controversial empirical evidence. Furthermore, existing generations choose perfect debt finance if dynamic inefficiency exists. In contrast, a balanced budget is preferred in a dynamically efficient economy with low productivity effects of public capital. However, an economy with high productivity effects of public capital might cho ose debt financing. This paper contributes to the elucidation of currently emphasized issues of public investment.

DOI： 10.1016/j.jmacro.2023.103535

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Scopus

Language：English   Publishing type：Research paper (scientific journal)   Publisher：International Tax and Public Finance  

This paper examines the endogenous choice of unit and ad valorem taxes in a model of tax competition with unemployment. Governments maximize objective functions that are a weighted sum of regional welfare and revenue. In the tax competition model, a high fixed wage rate generates unemployment and employment externalities. This effect can be either positive or negative because of freely mobile capital among regions. Without unemployment, revenue-maximizing governments choose unit taxes as their tax instrument to avoid revenue losses from intense tax competition under ad valorem taxes. However, with unemployment, positive employment externalities generate additional benefits for using ad valorem taxes to stimulate employment. Therefore, the present study shows that one region chooses an ad valorem tax, whereas the other chooses a unit tax, or that both governments use ad valorem taxes depending on employment externalities.

DOI： 10.1007/s10797-023-09785-x

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Scopus

Language：English   Publishing type：Research paper (scientific journal)   Publisher：Economic Modelling  

This paper analyzes tax competition and coordination, determining which is better in a multi-region endogenous growth model. With an integrated capital market, increased capital tax in one region generates external benefits to others through an increased tax base originating from capital flight. Because this efficiency cost affects resource allocation between private and public goods and intertemporal consumption and investment choice, a higher cost derives a lower equilibrium capital tax rate, leading to a higher economic growth rate. Consequently, the inefficiency costs exert two opposite welfare effects via inefficiently low public goods supply and high economic growth. Naturally, tax coordination to cope with severe tax competition is welfare improving to resolve the underprovision of public goods instead of accepting low growth. In contrast, tax coordination is not desirable if tax competition is mild because benefits from high growth outweigh the costs of an undersupply of public goods.

DOI： 10.1016/j.econmod.2022.105933

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Language：English   Publishing type：Research paper (bulletin of university, research institution)  

Language：English   Publishing type：Research paper (bulletin of university, research institution)  

Language：English   Publishing type：Research paper (bulletin of university, research institution)  

Language：English   Publishing type：Research paper (bulletin of university, research institution)  

Language：Japanese   Publishing type：Research paper (scientific journal)  

DOI： 10.1016/j.jmacro.2019.01.011

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Scopus

Authorship：Lead author   Language：English   Publishing type：Research paper (scientific journal)  

Web of Science

Language：English   Publishing type：Research paper (scientific journal)   Publisher：Elsevier B.V.  

This study investigates the private provision of public goods under uncertainty using a general dynamic equilibrium model with stochastic disturbances. In particular, the model incorporates income shocks governed by a Wiener process with a mean of zero and standard deviation of unity as uncertainty. We analyze how uncertainty and population size affect the supply of public goods. Dynamic analysis shows the importance of attitude toward risk and a contrast between short-run and long-run responses to increases in uncertainty and population size. Results show that under specified conditions, escalating uncertainty reduces the long-run contributions to public goods through the stochastic accumulation of capital but it raises short-run contributions. The average contribution increases to a positive finite value by increasing the population to a certain level, but it declines toward zero if the population size is infinite. These twin results are based on the dynamic behaviors of risk-averse individuals responding to elevated risks.

DOI： 10.1016/j.econmod.2017.08.008

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Scopus

Language：English   Publishing type：Research paper (scientific journal)  

DOI： https://doi.org/10.1016/j.jmacro.2014.06.006

Language：English   Publishing type：Research paper (scientific journal)  

DOI： https://doi.org/10.1016/j.econmod.2013.08.001

Language：English   Publishing type：Research paper (scientific journal)  

DOI： https://doi.org/10.1016/j.econmod.2011.01.014

Language：English   Publishing type：Research paper (scientific journal)  

Language：English   Publishing type：Research paper (scientific journal)   Publisher：WILEY-BLACKWELL PUBLISHING, INC  

This paper presents development of an endogenously growing finite horizons model with public capital, and investigates macroeconomic effects of fiscal policy and a change in life expectancy. Specifically regarding novel results, a growth-maximizing income tax rate exists that is less than the elasticity of public capital to output. In addition, in the model with income tax financing, there might exist an inverted-U-shaped relationship between life expectancy and growth, which is consistent with some empirical evidence. In this paper, we elucidate the interaction among public capital accumulation, taxes, growth, welfare and life expectancy.

DOI： 10.1111/j.1467-999X.2008.00339.x

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Language：English   Publishing type：Research paper (scientific journal)   Publisher：ELSEVIER SCIENCE BV  

This paper develops an extension of the endogenous growth model with variety expansion presented in Romer [Romer, P.M., 1990. Endogenous technical change. Journal of Political Economy 98, part 2, S71-S102] by considering public capital accumulation. Characterizing the transitional dynamics, the growth rate of consumption traces (and available number of intermediate goods also might trace) ail S-shaped converging path to the equilibrium growth rate, similar to a logistic growth Curve, if the intensity of public capital is sufficiently high. We also show that public investment enhances economic growth because it stimulates demand for intermediate goods and raises the market interest rate. (C) 2008 Elsevier B.V. All rights reserved.

DOI： 10.1016/j.econmod.2008.07.003

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Language：English   Publishing type：Research paper (scientific journal)  

Language：English   Publishing type：Research paper (scientific journal)  

Language：English   Publishing type：Research paper (scientific journal)   Publisher：MOHR SIEBECK  

This paper develops an endogenous growth model in which the government finances its public investment using both income taxation and seigniorage. Arguments presented in this paper show that public investment financed by seigniorage gradually pulls up the growth rate of consumption and overshoots the inflation rate. Furthermore, we show that public investment financed by an income tax brings about an overshooting of the inflation rate and a simultaneous undershooting of the growth rate of consumption. These dynamic effects influence welfare dynamics. Taking account of transitional effects, we derive the welfare effects of fiscal and monetary policy.

DOI： 10.1628/001522108X397606

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Language：Japanese   Publishing type：Research paper (scientific journal)   Publisher：Urban Studies  

This note presents an analysis of dynamic aspects of fiscal competition in a model with local capital accumulation. This shows that, even when a head tax is available, the optimal capital tax rate is generally non-zero. In addition, a decentralised equilibrium without a head tax might be characterised by overprovision of local public goods in a dynamic fiscal competition model. The source of inefficiency is overaccumulation of local capital. © 2008 Urban Studies Journal Limited.

DOI： 10.1177/0042098007087339

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Scopus

Authorship：Lead author,　Corresponding author   Language：Japanese   Publishing type：Research paper (scientific journal)   Publisher：Journal of Economics/ Zeitschrift fur Nationalokonomie  

This note presents an investigation of the optimal tax rule in endogenous growth models with public capital. It is presumed that the government levies only an income tax in addition to financing public investment. Furthermore, a household's saving is deducted from the income tax. We find the optimal tax rule whereby the social optimum is attainable. The manner by which a government imposes a tax on income and administers tax deductions is important for attaining a socially optimal situation. © 2007 Springer-Verlag.

DOI： 10.1007/s00712-007-0287-x

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Scopus

Language：Japanese   Publishing type：Research paper (scientific journal)   Publisher：Economic Modelling  

This paper presents analysis of indeterminacy and endogenous growth in a simple one-sector model of capital accumulation, in which the presence of public intermediate goods creates a positive externality in the production of final goods. In our model, public intermediate goods are assumed to be a stock variable (similar to public capital goods). According to the existence of public intermediate goods, the model generates transitional dynamics and then the intertemporal elasticity of substitution that is particularly critical to local indeterminacy. The possibility of indeterminacy is demonstrably consistent with plausible parameter values. © 2007 Elsevier B.V. All rights reserved.

DOI： 10.1016/j.econmod.2007.01.003

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Scopus

Authorship：Lead author,　Corresponding author   Language：English   Publishing type：Research paper (scientific journal)   Publisher：Studies in Regional Science  

This paper investigates the consequences of tax competition in a simple dynamic model. Because capital accumulation is allowed the standard conclusions of the tax competition literature were generalized in the dynamic model. First, we showed that the capital tax rate chosen by jurisdictional governments is not zero even when head taxes on immobile residents are available. Second, a decentralized economy may be characterized by an overprovision of local public goods. Finally, capital tax competition brings about not only over accumulation of capital stock but also under accumulation of capital stock. © 2007, JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL. All rights reserved.

DOI： 10.2457/srs.37.739

Scopus

Language：Japanese   Publishing type：Research paper (scientific journal)   Publisher：Economics Bulletin  

This paper develops an endogenous growth model with public capital and imperfect competition. In the model, we take into account monopolistic competition of intermidiate sector and endogenous determination of the number of firms in the sector by considering the fixed cost to keep production going. We show that the number of firms in intermidiate sector is affected by fiscal policy. Furthermore, it is demonstrated in the paper that market structure plays a key role in reducing the growth-maximizing tax rate.

Scopus

Language：Japanese   Publishing type：Research paper (scientific journal)   Publisher：FinanzArchiv  

This paper develops an endogenous growth model with public capital and examines the growth and welfare effects of a fiscal policy that is financed by corporate taxation. In the model, we incorporate the investment decision-making of competitive firms by considering the adjustment costs of private investment. We show that there arises an indeterminacy of the balanced growth path. Furthermore, it is demonstrated that growth-maximizing policy is not equivalent to welfare-maximizing policy on the balanced growth path. © 2006 Mohr Siebeck.

DOI： 10.1628/001522106X172652

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Scopus

Event date： 2016.11

Language：Japanese   Presentation type：Oral presentation (invited, special)  

Venue：慶應義塾大学   Country：Japan  

Event date： 2016.11

Language：Japanese   Presentation type：Oral presentation (invited, special)  

Country：Japan  

Event date： 2015.7

Language：English   Presentation type：Oral presentation (general)  

Venue：University of Luxembourg   Country：Luxembourg  

Event date： 2015.5

Language：Japanese   Presentation type：Oral presentation (invited, special)  

Country：Japan  

Event date： 2014.9

Language：Japanese   Presentation type：Oral presentation (invited, special)  

Country：Japan  

Event date： 2013.6

Language：English   Presentation type：Oral presentation (general)  

Venue：Clare Hall College, University of Cambridge   Country：United Kingdom  

Event date： 2011.6

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2010.10

Language：Japanese   Presentation type：Oral presentation (invited, special)  

Country：Japan  

Event date： 2009.6

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2008.11

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2006.10

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2006.6

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2005.9

Language：Japanese   Presentation type：Oral presentation (general)  

Venue：Chuo University   Country：Japan  

Event date： 2005.5

Language：English   Presentation type：Oral presentation (general)  

Country：Korea, Republic of  

Event date： 2003.9

Language：Japanese   Presentation type：Oral presentation (general)  

Country：Japan  

Event date： 2003.6

Language：Japanese   Presentation type：Oral presentation (general)  

Venue：Oita University   Country：Japan