This paper adopts a non-Walrasian formulation of the labor market, as suggested by Arrow, Negishi, and Hahn, and constructs a general equilibrium trade model in which unemployment occurs although wage rates adjust. The purpose of the study is to examine the effectiveness of various trade policies on unemployment in different sectors and on income received by factor owners. Different assumptions about intersectoral mobility of both labor and capital are introduced, with the implication that policies which seem to fight sectoral unemployment in the short run might lead to higher unemployment in the long run. Concerning endowment changes, if a country experiences an inflow of labor, this will raise unemployment rates only temporarily, but leave them unchanged in the long run. Finally, the impact of tariffs on factor returns in unemployed industries is limited to short-run effects, while endowment changes have no impact on factor returns in either short or long run.

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The purposes of this article are to construct a simple general equilibrium model with pure public good and endogenous factor income tax based on the Lindahl pricing rule and consistently to generalize Okamoto (1985) further. The main result is that if all the factor augmenting functions attached to the primary inputs in the private sectors are directly proportional to each other, then the stability condition is satisfied and the main trade theorems hold.

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The non-linear Leontief System has been built on the‘Input Function.’The objectives of this paper are to give a micro foundation of input functions in a competitive economy and to examine whether or not standard results remain true in the non-linear environments. The results obtained here are (i) that we can successfully construct an input function from the neoclassical production functions, (ii) that the duality equality holds, and (iii) that weak solvability implies local solvability.

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Many people believe that it is undesirable to redistribute income through an annuity system. From an efficiency point of view, it seems to be better to use a tax system to redistribute income. This paper examines the reasons why an annuity system is used to redistribute income, even when the tax system has a redistributive role. Without myopia and capital market imperfections, redistribution through an annuity system has no advantage compared with a tax system. If individuals are myopic and the capital market is imperfect, however, redistribution through an annuity system increases national saving and has a positive effect on capital formation. The paper shows, in addition, that differences in behavior among income classes are important for public policy-making.

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In this article, we generalize the Carlson-Parkin (1975) method for the estimation of expected inflation rates based on qualitative surveys. An important generalization is that in our model, people's responses to the question given can be random while in the Carlson-Parkin method, they are not random. Second, alternative determinations of a threshold value are proposed. Third, the problem is treated with a gamma response function under a gamma distribution.

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This econometric study is an attempt to build a politico-economic model of Japan. It explicitlyspecifies the interrelationship between policy decision process and economic mechanism. There seems to be a difficulty that political variables are too scarce to build an econometric model. This analysis interpolates many political data, making use of the so-called spline functions, so that our model consists of as many political variables as economic ones. The policy variable is public investment, determined through political process (political variables). Those political variables depend upon economic outcomes, caused partly by that policy.
A simulation analysis shows that an expansionary fiscal policy will finally lower the popularity of the Liberal-Democratic-Party, although temporarily raise up its popularity.

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In a specific factor model we examined the equivalence of tariffs and quotas under capital movements. We derived three results. First, both policies become equivalent despite the presence of the foreign capital which is fixed. Second, under free capital mobility, welfare depends only on the domestic price irrespective of the kind of policies. Third, the equivalence breaks down and the quota policy establishes higher welfare, a lower domestic price and the lower foreign capital stock under free capital mobility.

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