I develop a highly tractable general equilibrium model in which heterogeneous producers
face collateral constraints, and study the effect of financial frictions on capital misallocation …

The textbook neoclassical growth model predicts that countries with faster productivity
growth should invest more and attract more foreign capital. We show that the allocation of …

We quantitatively analyze the role of financial frictions and resource misallocation in
explaining development dynamics. Our model economy with financial frictions converges to …

The Japanese Economy, 4th Edition is for anyone curious about economics, for it is
impossible to appreciate economics without vivid examples of its application. This book is …

Past government spending in Japan is imposing a significant fiscal burden that is reflected in
a net debt to output ratio near 150%. In addition, an aging Japanese society implies that …

The structural transformation of China–or the reallocation of resources from the agricultural
sector to the nonagricultural sector–between 1978 and 2003 was truly remarkable. We …

A general equilibrium model that properly captures the risks in old age, the role of family
insurance, changes in demographics, and the productivity growth rate is capable of …

This paper quantitatively examines the effects of two exogenous driving forces, investment-
specific technological change (ISTC) and the demographic change known as “the baby …

Japan is in the midst of a demographic transition that is larger and more rapid than other
OECD countries. We are interested in understanding the role of lower fertility rates and …

What are the effects of demographic changes on the real interest rate in Japan? We present
a dynamic general equilibrium model in which demographic changes are captured by …