Abstract
This paper aims to develop a Macro-Econometric Model for Japan as a whole, and also to empirically analyze the Japanese economy with respect to structure, predictions and simulations together with policy evaluations.
Furthermore, a Regional Model for the Chubu Region (Central Part of Japan), which consists of Toyama, Ishikawa, Fukui, Nagano, Gifu, Shizuoka, Aichi, Mie and Shiga Prefectures, was developed to link the above-stated Macro-Economic Model for Japan as a whole.
Judging from our empirically derived results, we can explicitly state some policy-recommendations, such as establishment of a new social system to encourage capital investments, research development of companies, and establishment of a stable tax-finance system for national as well as local governments.
JEL Classification: C30, H30, R15
