Recently it was shown that any social choice correspondence which can be implemented in undominated strategies by a bounded mechanism satisfies an incentive-compatibilitytype condition called strategy-resistance. In this paper we show that the plurality correspondence is implemented in undominated strategies by a bounded mechanism if and only if n=2 or #A=2 (n is the number of agents and #A is the number of outcomes), although it is strategy-resistant if and only if n and #A satisfy one of following four conditions: (i) n=2, (ii) #A=2, (iii) n=3, #A_??_3, (iv) n=5, #A=3. These results imply that strategy-resistance is not a sufficient condition. We also describe Nash-type implementability of the plurality correspondence.

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A big firm is aiming to enter a small and growing market. When should this entry be permitted for the benefit of the consumers and the incumbent firm? We consider this problem in the framework of continuous dynamics. The entrant is a big firm that commits to keep its large level of capital constant. Hence the large firm will have the stronger position in the market compared with the incumbent firm.
Given the entry time announced by the government, the incumbent accumulates capital so as to maximize profit over time. Given the optimal dynamic behavior of the firm, the government decides the entry timing.
We will deduce the feature of this optimal timing and that the timing becomes earlier (or later) when the government evaluates the consumer's surplus more (or less) relatively to the producer's.

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This paper examines the welfare effect of a tax reform policy which diversifies the commodity tax rates in a three good economy with pure profit. If the commodity taxes are uniform initially, it is welfare improving to raise the tax on the commodity whose demand is more complementary with leisure and whose supply is more inelastic to wage. The formula we obtain treats the supply and the demand sides symmetrically. Furthermore, we can show that if the tax reform is welfare improving, then it increases labor supply in the economy, too. If the commodity tax rates are widely diversified, replacing commodity taxes by a wage income tax is welfare improving even in an economy with pure profit.

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In this paper we deal with dynamic Cournot competition and explore the relationship between the stability properties of an equilibrium path and quasi-competitive behavior of the market. More precisely we show that the stability conditions introduced for the static case ensure global convergence of a unique dynamic equilibrium path towards the steady state and quasi-competitiveness of the entire equilibrium path in the neighborhood of the steady state as well as the stationary state itself.

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Understanding what accounts for the relationship between monetary measures and the output of the economy is one of the basic issues of macroeconomics. It has been argued that there exists a positive relationship between money and output. However, in most general equilibrium models, money is neutral in the sense that monetary measures affect price levels but not output (in the long-run or when it is expected). Money in those models is outside money. King and Plosser (1984), however, found that the correlation between money and output is primarily with inside money. In this paper, as the first step in the study to investigate the relationship between monetary measures and output, a rigorous general equilibrium model in which inside money and outside money coexist is constructed. The dependence of the steady-state value of inside money and output on parameters which describe the environment of the economy is also studied.

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Using a version of two-asset optimal lifetime consumption model with human wealth, we analyze the effect of income tax on interest on portfolio selection and savings rate as compared to that of capital gains tax and the combined effect of the two taxes. We suggest a method of measuring the welfare cost of capital income taxes in this life-cycle setting and apply it to Japanese workers households classified by cohort. We calculate the ratio of compensation to lifetime expenditures considered as a measurement of the welfare cost. Households who bear these taxes would pay this ratio of lifetime consumption expenditures before taxation so as to avoid remaining the post-tax level of utility. The estimation results show that the welfare cost of both income tax on interest and capital gains tax is between 3% and 7% of the sum of lifetime expenditures at each period after taxation.

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This paper examines the limiting distribution of estimates of cumulant spectral densities. The proposed estimator of the cumulant spectral density is constructed by replacing product moments with estimates of product moments according to the definition of the cumulant, followed by taking a weighted Fourier transform of these estimated cumulants. Kim (1989) showed this estimator to be consistent. Under stationarity and ρ-mixing, asymptotic normality is shown to obtain.

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