**Ngo Van Long and Koji Shimomura**
**"Some results on the Markov equilibria of a class of homogeneous differential
games"**
*Journal of Economic Behavior and Organization*
**<simomura@rieb.kobe-u.ac.jp>**
**We consider the class of differential games with transition dynamics
and constraints**
**that are homogeneous of degree one. We show that if the integrand of
the objective function**
**is homogeneous of degree a, then best replies to linear homogeneous
Markov strategies**
**are linear homogeneous, and the value function is homogeneous of degree
a. A paralell result**
**holds when one applies logarithmic transformation to the integrand.
Examples are provided.**
**Koji Shimomura (Kobe University)**
**"A dynamic equilibrium model of durable-goods monopoly"**
*Journal of Economic Behavior and Organization*
**<simomura@rieb.kobe-u.ac.jp>**
**In this paper we consider a simple dynamic equilibrium model of durable-goods
monopoly**
**in a discrete time framework and show that a revised Coase Conjecture,
"Monopolists are**
**efficient under a proper tax-subsidy policy", holds even in the case
of increasing marginal cost**
**if the length of each period in the discrete model is sufficiently short.**
**Been-Lon Chen and Koji Shimomura**
**"Self-Fulfilling Expectations and Economic Growth:**
**A Model of Technology Adoption and Industrialization"**
*International Economic Review ( February 1998 )*
**<simomura@rieb.kobe-u.ac.jp>**
**In this work, we constructed a model that integrates both industrialization
and**
**endogenous growth. We feature the role of technology adoption in sustaining
growth**
**and achieving industrialization. Our economy contains multiple equilibria
for an initial**
**history. We found that only self-fulfilling expectations matter in selecting
an equilibrium,**
**whereas history plays no role. Our equilibrium is shown to involve a
threshold property:**
**when the economy starts above this threshold, the economy is able to
sustain growth:**
**otherwise, it is not. Both the rate of economic growth and the process
of industrialization**
**increase gradually and approach an upper bound.**
**M. C. Kemp and Koji Shimomura**
**"Increasing Returns and International Trade"**
*Review of International Economics*
**<simomura@rieb.kobe-u.ac.jp>**
**We develop a model of international trade with increasing returns to
scale by taking**
**into account the possibility of cooperation among agents in an egalitarian
economy.**
**It is shown that each country gains from trade in a trading world in
which there are**
**arbitrary numbers of increasing-returns-to-scale goods, constant-returns-to-scale
goods,**
**factors of production and countries.**
**Fumio Dei (Kobe University)**
**"INDUSTRIALIZATION AND EXPECTATIONS IN A SMALL OPEN ECONOMY"**
*Japanese Economic Review*
**<dei@rose.rokkodai.kobe-u.ac.jp>**
**The degree of industrialization in a country can be measured by the
diversity of**
**intermediate goods produced in the country. I construct a small-country
model**
**in which this diversity is determined endogenously in the process of
industrialization.**
**My model shows that the characteristics of equilibria depend on the
substitutability**
**among intermediate goods; particularly when the substitutability is
large, there may**
**be multiple equilibria. When such equilibria exist, optimistic expectations
lead to**
**a high degree of industrialization but pessimistic expectations yield
a low degree**
**of industrialization.**
**Makoto Yano (Keio University)**
**"ON THE DUAL STABILITY OF A VON NEUMANN FACET AND**
**THE INEFFICACY OF TEMPORARY FISCAL POLICY"**
*Econometrica*
**<myano@econ.keio.ac.jp>**
**This study establishes two main results in a dynamic general equilibrium
model.**
**The first is to demonstrate the dual Liapounov stability of a von Neumann
facet**
**without the restrictive assumptions on the structure of underlying technologies**
**that are commonly adopted in the optimal growth literature. The second
result is**
**to demonstrate that a temporary change in fiscal policy has almost no
effect on**
**present and future consumption. While such inefficacy of temporary fiscal
policy**
**has been discussed in the context of permanent income hypothesis, in
this study,**
**it is proved in the dynamic general equilibrium framework under a set
of basic**
**assumptions of general equilibrium theory.**
**M. C. Kemp and Koji Shimomura**
**"Trade Gains: A Unified Exposition Based on Duality"**
*Japanese Economic Review*
**<simomura@rieb.kobe-u.ac.jp>**
**This paper presents the well established gains-from-trade propositions
of**
**perfect competition in a unified form based on fundamental duality concepts.**
**M. C. Kemp, M. Okawa and Koji Shimomura**
**"Voluntary Export Restraints and Economic Welfare:**
**A General Equilibrium analysis"**
*Japanese Economic Review*
**<simomura@rieb.kobe-u.ac.jp>**
**We derive some sufficient conditions for the Suzumura-Ishikawa proposition**
**on voluntary export restraints to hold when their model is extended
to**
**a general equilibrium framework. The sufficient conditions are concerned**
**with the magnitude of income effects which plays no role in the**
**partial-equilibrium analysis of Suzumura and Ishikawa.**
**Koji Shimomura (Kobe University)**
**"A Geometric Approach to the Stolper-Samuelson Theorem"**
*International Economic Review ( August 1997 issue)*
**<simomura@rieb.kobe-u.ac.jp>**
**This paper presents a pair of new equivalent conditions for a given**
**n x n matrix of distributive shares to satisfy the Stolper-Samuelson**
**criterion. Specifying n as 4 and making use of barycentric coordinates,**
**we give geometric characterization to the equivalent onditions.**
**Shinsuke Ikeda (Osaka University) and Yoshiyasu Ono (Osaka University)**
**"Fiscal Policy, Wealth Divergence, and Lifetime Utility"**
*Journal of Economics (Zeitschrift fur Nationalokonomie)*
**<ono@iser.osaka-u.ac.jp>**
**Using a two-country dynamic optimization model where the less patient**
**country decumulates and the more patient one accumulates wealth,**
**we analyze spill-over effects of lump-sum and consumption taxes.**
**A lump-sum tax on a country definitely harms the other country**
**through a change in the rate of interest. A lump-sum tax on either country**
**always improves the less patient country's asset position. A consumption**
**tax has no spill-over effect, although it is Pareto-inferior. Applying
these**
**results into a closed-country context with heterogeneous agents, we
also**
**discuss policy implications of a discriminatory tax.**