Research
Working Papers
Deregulation: Why We Should Sometimes Welcome Even Low-Quality Firms.
The quality of newly invented goods or services can only be assessed after they have been in use for a significant period. This applies to both high-quality and low-quality products---typically, the former survive, whereas the latter become obsolete in the market, resulting in resource wastage. We investigate this situation by developing a general equilibrium model. In a competitive market equilibrium, when the entry cost is relatively high compared to the research and development costs, only high-quality firms enter the market, ensuring efficiency. However, when the entry cost is low, low-quality firms enter the market, resulting in inefficiency. In this case, although entry regulations may exclude low-quality firms, they also reduce market competition and increase labor cost, leading to the decrease in economic welfare.
Publications
Under- and over-investment in education: the role of locked-in fertility, with M. Nakagawa and Y. Sugimoto, Journal of Population Economics Volume 35, April 2022, Pages 755–784
Lethal Effects of Pollution and Economic Growth: Efficiency of Abatement Technology, with Y. Moridera and K. Futagami, The Japanese Economic Review Volume 69, June 2018, Pages 189–206
Notes on Economic Growth with Scale Effects: Is Depopulation Compatible with Growth? , with M. Nakagawa and Y. Sugimoto, Theoretical Economics Letters Volume 5, No.2 2015, Pages169-178
Neutrality of an increase in the price of natural resources to the level of technology, with T. Morita, Economic Modelling Volume 32, May 2013, Pages347-350