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Abstract | PDF (221 kilobytes)

This paper considers binary choice models with panel data. We
extend the correlated random effects binary choice models for panel data in
Chamberlain (1980) to semiparametric models in which the conditional expectation
projection of the unobserved time-invariant heterogeneity onto the space
of functions of time-varying covariates for all time periods is nonparametrically
specified. This class of models is tractable for identification and estimation of
the model parameters with short panel data. We provide a set of mild conditions
under which the parameters are identified. We propose to use the penalized
sieve minimum distance (PSMD) estimation and develop the asymptotic theory.
The PSMD estimators of finite dimensional parameters are shown to be semiparametrically
efficient when the weighting matrix is the optimal one. We also
show the bootstrap validity. The Monte Carlo simulation results confirm that the
proposed estimator performs well in finite samples.

Abstract | PDF (262 kilobytes)

We consider an election contest in which two candidates first raise
funds and then compete for votes among a continuum of voters by engaging in
persuasive efforts. To cover campaign spending, candidates must raise funds
by bearing costs beforehand and they compete by allocating persuasive efforts
among voters. Each voter is persuaded by campaign effort and votes for the
candidate who expends more persuasive effort than the other. We characterize
equilibrium strategies—both fund-raising and allocation of persuasive effort
strategies. A candidate with a higher value for the vote raises more funds than
the other, but the latter competes in the election stage by giving zero persuasive
effort with a positive probability to each voter and using the saved money for
expending a high level of persuasive effort with the remaining probability. The
role of fund-raising costs is also discussed.

Abstract | PDF (321 kilobytes)

Focusing on the asymmetric freight rates associated with backhaul
problem, we analyze firms’ choice of organizational form between the unitary
form (U-form) and the multidivisional form (M-form). With exogenous freight
rates, choosing M-form is the dominant strategy even though collective choice
of the U-form benefits both firms (prisoners’ dilemma situation). Allowing for
endogenous freight rates results in asymmetric freight rates between port pairs
due to trade imbalances. In this case, unlike previous studies, diverse types of
organization form, i.e., both firms U-form, both firms M-form, and only one
firm U-form, arise depending on the product substitutability and marginal cost
of transport firm. In any case, the U-form is preferred to the M-form from the
welfare perspective in the symmetric organizational forms between firms.

Abstract | PDF (3016 kilobytes)

The introduction of CBDC is expected to make extensive changes
to the financial markets, the financial industries, and the composition of shortterm
assets held by the private sector, thereby affecting the implementation and
the transmission mechanism of monetary policy. In this regard, this paper analyzes
the impact of CBDC introduction on the reserve market, central bank
balance sheet, and seigniorage, with the aim to contribute to stable and secure
policy operations. Rather than building a new general equilibrium model that
structurally reflects CBDC demand, we evaluate and investigate the effects of
the introduction by realistically expanding a simple money multiplier model to
enable intuitive scenario-based analyses.