The mechanism by which the expectation of future land price is formed has not been treated appropriately in the literature, in spite of its importance in the analysis of land taxation. This paper presents a model of intertemporal allocation of land in which expected price appears as anendogenous variable. The solution is obtained by the use of the rational expectation hypothesis. It is shown that under some plausible assumptions, intertemporal allocation of land realized by market is socially optimal.
The effects of the following taxes are examined: a tax on the value of vacant land, a tax on the value of land in active uses, a general tax on the value of land (a property tax), and a capital gain tax. It is shown that the introduction of any of these taxes (or a rise in the tax rate) reduces the amount of land reserved for future uses.
If market fails to achieve the optimal allocation due, for example, to a bias in the speculators' expectation, it is both necessary and possible to utilize any of these taxes to achieve the optimal allocation. The tax rates appropriate for this purpose are calculated.

View full abstract

The purpose of this paper is to explore into the behaviors of the demand and supply of labor in Japan with special emphasis on sex/employment status composition.
The model consists of thirty-five endogenous variables, which is classified into three blocks of labor demand, labor supply and wage determination. And in these blocks relevant variables are disaggregated by sex. In view of the increasing number of female labor force, disaggregation by sex seem to be crucial in grasping basic trends in Japan's labor market.
A test of the explanatory power of the model was performed by the final test for the period of 1975 QI-1978 QIII. Disaggregated model showed a significant improvement in explaining the actual movement of the market as compared to some of the aggregate labor market model.
Further, two simulations were performed by shocking the model by changing two of the major exogenous variables respectively. That is (1) one per cent increase in CPI from actual level and (2) one per cent increase in GDP. From the above simulations it was found that demand for male/female employment, labor supply of housewives, and wage rate change interact in a most interdependent way which could lead to large forecasting errors when approached by an aggregate model.

View full abstract

The purpose of this study is to answer the following questions by using the macro-econometric model: What are the causes of the worsening U.S.balance of payments in the late 1950's and 1960's? Particularly, how did direct investment abroad exert its influence on the U.S.balance of payments?
Some economists argue that the causes of the unfavorable balance of payments in this period are (i) the slowdown of the rate of technical progress, (ii) the increase of government expenditures, especially military expenditures, and (iii) the sharp increase in direct investment abroad.
In order to analyse the effects of these factors on the balance of payments, I extended the foreign sector of the revised version of the Klein-Goldberger model to include the long-term capital accounts.
Our model consists of 21 structural equations and 15 identities. Estimation method of the structural equations is the ordinary least squares method and the sample period is 1951-1970.
The so-called final test shows that the model is able to explain, with a tolerable degree of accuracy, the actual course of the American economy over the sample period.
The results of several simulations can be summarized as follows.
(i) The slowdown of the rate of technical progress in 1950's, was not the cause of the unfavorablebalance of payments though it decreased the domestic product in the 1950's.
ii) The slowdown of the rate of technical progress and the increase of government expenditures after 1965 played an important role in the inflation and the unfavorable balance of payments.
(iii) Simulations indicate increases in the foreign direct investment worsen the balance of payments in the short run, while they improve it in the long run.

View full abstract