In this paper, we consider a nonlinear macrodynamic model which describes the economic transaction between two regions. We suppose that the economic structures of both regions are characterized by the Kaldorian business cycle model with money, and two regions are connected through interregional trade and interregional capital movement. We study the dynamic behavior of such a system under fixed exchange rates by means of analytical method and numerical simulations.
In recent times certain countries or regions have experienced severe financial crises with large output loss. This has occurred whether the exchange rates were pegged or flexible. There appear to be basic mechanisms at work from which even flexible exchange rate regimes cannot escape. This paper reviews some of the stylized facts that appear to be common to such financial crises and surveys some recent financial market models that attempt to model such macro-caused financial and real crises. We focus on the connection between exchange rate volatility, financial crisis and large output loss. We find models that exhibit multiple equilibria particularly relevant to explain macro-caused financial and real crises.
A discrete time dynamic user equilibrium (DUE) model with multiple destinations with point queue is proposed. Two kinds of link travel times, namely estimated and actual link travel times, are introduced. The differences between the reactive/predictive user optimal assignment and DUE are examined. The necessity of using actual travel time for DUE problem is discussed. The proposed solution method is based on variational inequality problem and method of successive average, and only solving shortest path problem of the original network is required. The resulting sub-problem is a standard fixed demand problem, on which Frank-Wolfe method can be employed. Finally, a numerical example is presented, and comparison of DUE problem and DUO problem is given.
In Japan, because of the extremely low fertility in recent years, the improvement of child-care-service supply is advocated, but such improvement may induce great financial burdens at national and regional levels. The purpose of this study is to attempt to draw implications for financially effective service supply by analyzing the municipal data on approved day-care centers in 1998. The objects of analyses are 504 Japanese municipalities, including 84.0% of the municipalities with populations of two hundred thousand or more. When the working expenses per child in approved day-care centers are calculated, the obtained values for public management are much larger than those for private management. These differences are ascribed to the working expenses per nursery teacher rather than the relative numbers of nursery teachers as the age structure of children and regional value of money are taken into account. When the ages of nursery teachers are averaged, the obtained averages for public management are larger than those for private management, but these differences cannot fully explain the differences in the working expenses per nursery teacher. By analyzing the municipal differentials in the working expenses per child, it can also be seen that the differentials for public management are much larger than those for private management. Although the service supply by public management is not necessarily expensive, it can be concluded that the service supply by private management is generally preferable in terms of the financial aspect.