Research Overview
Our research programme focuses on the development and application of microeconomic theory to address complex global challenges. By bridging rigorous theoretical modelling with empirical data, we explore how decision-making under uncertainty shapes broader economic and social outcomes.
Core Research Questions:
How do heterogeneous probabilistic beliefs emerge?
How do they shape financial markets, collective decision-making, and policy outcomes in an uncertain world?
β 1. Climate Finance
Mathematically evaluating the impacts of policies such as emissions trading and carbon taxes on financial systems and social welfare. Utilising Dynamic Stochastic General Equilibrium (DSGE) models with diverse expectations/heterogeneous beliefs, we identify optimal policies based on ex-post welfare criteria.
Ongoing Project:
'Climate Finance: Diverse Expectations and Market Stability' (JSPS KAKENHI).
β 2. Disaster Resilience
Researching how households, businesses and local communties can ensure resilience to unpredictable large-scale disasters. By incorporating Contract Theory, we propose optimal designs of insurance and public support mechanisms.
Ongoing Project:
Empirical Research on Resilience of SMEs to Disasters (RIETI project).
Articles/Reports:
β 3. Diverse Expectations and Communication
Theoretically analysing why information sharing sometimes fails to lead to consensus. We examine the impacts of information on echo chambers and belief polarisation in contexts such as immigration policy and social fragmentation.
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β 4. Measuring Diversity/Heterogeneity
Establishing methodologies to derive structural diversity (beta diversity) from observable micro and macro indicators by applying Multiplicative Decomposition of diversity. A primary aim of this line of research is to develop methods to quantify diversity of unobservable primitives such as preferences including probabilistic beliefs or attitudes towards risk/uncertainty.
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