Published papers

The COVID-19 vaccines played a pivotal role in safeguarding many people. Yet, vaccine hesitancy remained a significant barrier to increasing coverage rates, as many high-income countries faced prolonged vaccine refusal campaigns. In Japan, vaccine doses were administered under a reservation system accessible via a website and by phone. Achieving a high vaccination coverage for a vaccine that was offered at no financial cost was surprisingly difficult in Japan as well. In many countries, vaccine hesitancy during the pandemic has been closely related to people's trust in their governments given governments' controversial social distancing mandates. In Japan, lockdowns were voluntary, and vaccinations were also not mandated. As there were no significant political conflicts about the government's policies, vaccination acceptance was influenced by more basic tenets, and we focus here on social capital, defined as cohesive links that enable a society to function effectively. Social capital, in this context, refers to community trust, collaboration, and engagement that create social bonds between individuals and society. Using a uniquely large survey, administered repeatedly through the years of the pandemic, we mostly find support, for the hypothesis that social capital matters for the vaccination decision; and that it matters even once we control for institutional trust (especially trust in the medical system). However, this general association between trust in other community members, belief in the willingness of community members to engage in reciprocal assistance, and belief in the more general willingness of the community to support individuals, were all associated differently with the vaccination decision, and with the views expressed about the vaccinations. From a policy perspective, this suggests that intra-community trust (i.e., bonding social capital), is important even in contexts when trust in governmental is not a significant concern.

Vaccination has been critical to reducing infections and deaths during the coronavirus disease 2019 (COVID-19) pandemic. While previous studies have investigated attitudes toward taking a vaccine, studies on the determinants of COVID-19 vaccination behavior are scant. We examine what characteristics, including socioeconomic and non-economic factors, are associated with vaccination behavior for COVID-19 in Japan. We use a large nationwide online survey with approximately 10,000 participants. As of September 2021, 85% of the respondents said that they had received or would receive a COVID-19 vaccine. Employing logistic regression analysis on vaccination behavior, we found that vaccination rates are higher among those who are older, married, educated, and/or work in a large company. On the other hand, vaccination rates tend to be lower among the self-employed, younger women, and those with poor mental health. Income did not significantly correlate with vaccination. Medical workers were found to have a relatively high rate of vaccination. Although attitude towards risk and time preference were not crucial factors for vaccination, fear of infection, infection prevention behavior, and agreement with government policies on behavioral restrictions in crisis situations positively correlated with vaccination.

The coronavirus disease (COVID-19) pandemic plunged many industries of the economy into contraction, particularly the travel, hotel accommodation, and eating/drinking industries. In Japan, some demand-inducing policies targeting such industries were implemented, known as the Go To Travel and Go To Eat campaigns. Using a unique individual-level survey, we investigate what factors make people respond to these campaign policies. We find that certain socioeconomics factors (e.g., gender, income, ICT skills) as well as noneconomic factors matter. In particular, risk attitudes, and personal traits (e.g., extraversion) crucially affect whether people traveled or dined out in response to these campaigns despite the spread of COVID-19.

When are people willing to donate their time or money after a disaster? We investigate the psychological and socio-economic determinants of post-disaster giving in Japan, using a nationally representative panel survey of more than 7,000 respondents, conducted repeatedly from early 2020, including after the 2024 Noto Peninsula earthquake. We examine how individual characteristics—including past disaster experience, social capital (trust, reciprocity, cooperation), ‘Big-5’ personality traits, and digital behaviours—influence the likelihood of engaging in various forms of post-disaster assistance, from traditional monetary donations to newer digitally-facilitated acts such as online shopping for Noto products. Our analysis finds that prior disaster experience and personal openness are consistent robust predictors of prosocial behaviour. The relationship between social capital and aid activities is more subtle. Trust and cooperation are both positively associated with post-disaster assistance, but this is not the case for reciprocity. These findings emphasise that nuanced conceptualisation of social capital is required and underscore the need for caution in assuming its universal relevance in mobilising disaster aid. We conclude by suggesting directions for future research that more precisely delineate the interplay between social, psychological, and socio-economic factors in shaping post-disaster giving.

This study investigates quality trade using a declaration level customs dataset from 2014 to 2020. We find that high quality products tend to be traded with higher per-unit freight costs, lower ad valorem tariff rates, and with countries with higher GDP per capita, even after controlling firm-specific and product-specific time-invariant factors.

In Japan in the 1920s, several financial crises and government policy led to bank mergers and the consolidation and expansion of branch networks. Using unique historical bank branch-level lending and deposit data, we show that branch banking integrated peripheral markets with the rest of the country, with large urban banks – those headquartered in Tokyo and Osaka – using deposit supply shocks in peripheral areas to fund lending in their core markets. While these findings support contemporary concerns about branch banking draining funds from peripheral markets, we argue that the export of liquidity by urban banks likely represented an efficient reallocation of credit, driven primarily by competition in funding markets. Faced with high-yielding lending opportunities in central prefectures, urban banks bid up deposit rates in peripheral areas, raising local banks’ funding costs. Local banks responded by lowering intermediation margins and reducing lending to traditional industries, which suggests that they shifted their lending to less risky and more efficient customers. We speculate that this competitive reallocation of capital across regions and sectors allowed banks to maintain a functional specialization in different customer segments, which may explain the continued coexistence of small relationship lenders and large integrated arm’s-length lenders in local banking markets.

We explore the role that large fires played in the early development of the Japanese fire insurance industry. Using a prefecture-level data set spanning 30 years, our econometric analysis shows that large fires led to an increase in new policies and policy renewals, consistent with historical narratives that insurance companies used these events to advertise their business. We also show that this subsequent surge in policies led to more small fires due to arson. Anecdotal evidence suggests that it is more likely to have been due to moral hazard rather than adverse selection.

This paper investigates teleworker efficiency in Japan in the COVID-19 era by using unique survey data on telework. Many Japanese workers started teleworking during the pandemic and found both benefits as well as impediments. Overall, we find that telework experience and the work environment (e.g., having clearly specified tasks and a flexible working system), changes in work–life balance (e.g., working time), and good mental health improves teleworker efficiency.

This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.

The ongoing global pandemic has brought into sharp relief the possible interactions between the epidemiology of a virus, the structure of the economy and society that becomes exposed to it, and the actions chosen by government, individuals, and communities to combat it or ameliorate its economic impact. Surprisingly, there has not been sufficient research on these economic and policy interactions of the 1918–1920 influenza pandemic—the deadliest pandemic of the 20th century. This paper focuses on Japan, which as a minor participant of and was not directly affected by World War I. We exploit the diversity of experiences with the pandemic and its attendant policy responses across Japanese prefectures; and investigate the importance of the pandemic's toll (measured by excess mortality), and of nonpharmaceutical policy interventions (NPIs), in determining the pandemic's economic impact. We do so by focusing on the production and employment in the textile sector, given the availability of data and the general importance of the textile sector for emerging economies (as Japan was at the time). We find a significant adverse impact of the pandemic on textiles (almost 30% for an average prefectural excess mortality shock) and indeed find that the implemented NPIs were effective in ameliorating around one half of the pandemic's adverse economic consequences, especially for textile output (rather than employment). Furthermore, these NPIs were more effective when the excess mortality was higher. In this case, there was no trade-off between money and life, but rather the two were complimentary.

This paper investigates the impact of work from home (WFH) on time use for work, housework, leisure, and sleep in daily life. We use time-use survey data for Japan. We find that WFH tends to reduce working hours. By WFH, females spend more time on housework, while males tend to devote more time to leisure. However, WFH involves heterogeneous impacts on time reallocation among different groups. There are less conspicuous differences in time allocation by single males and females work.

Focusing on Japan over the period 1988–2013, this paper provides the first test of the extent to which pollution offshoring has occurred for this major industrial economy. In so doing, we identify whether the composition of domestic production, imports, overall trade patterns and overseas outsourcing has become more or less pollution intensive. We then focus on the role played by overseas outsourcing in pollution offshoring. Utilising a unique dataset of approximately 4000 Japanese firms for the period 2009–13, we use propensity score matching and difference-in-differences to examine how a firm's CO2 emissions intensity is affected by its decision to outsource some of its production overseas. Our results indicate that the composition of Japanese imports appear to have become dirtier and the carbon embodied within Japanese imports is larger and has grown more rapidly than the carbon embodied within exports. We also find that relative to a control group, the growth rate of pollution intensity of firms that begin overseas outsourcing is 7.3 percentage points lower in the year that they start overseas outsourcing and 7.7 percentage points lower in the following year, suggesting that outsourcing is one route through which pollution offshoring is occurring. New importers also experience slower emissions growth but the reduction is less than for new outsourcers.

The Great Kanto Earthquake of 1923 caused serious damage to firms and banks in Yokohama City. We explore the role of the financial support by the Bank of Japan (BoJ) through local banks in a firm's survival and recovery from the natural disaster. We find that the small- and medium-sized firms (SMEs) that had a relatively large correspondent bank with a large number of bills rediscounted by BoJ had a higher likelihood of survival but lower growth after the earthquake. Liquidity supply by the central bank for recovery from a negative shock can have both positive and negative impacts.

Technology holders may have strategic incentive to offer licensing contracts that deter (potential) rivals from conducting their own R&D. This study develops a simple model of technology licensing from a foreign firm to a home firm, in which R&D serves as an alternative means for the home firm to enter the market. We first derive the optimal licensing fees with differentiated goods and two-part tariffs. Depending on parameter values, three types of licensing contracts can emerge: (i) by means of a fixed fee alone, (ii) by means of a royalty alone, and (iii) by means of a combination of a fixed fee and a royalty. We then specifically investigate intervention by the home government: withholding taxes on royalties and R&D subsidies. A withholding tax may improve home welfare without imposing any burden on the home firm and consumers. Committing itself to an R&D subsidy, the home government can reduce licensing fees without any cost.

This study is the first to comprehensively investigate international trade at the firm-level using Japan's customs data for the 2014–2020 period. We first decompose international trade into the intensive and extensive margins and show that the intensive margin accounts for around 30% and 40% of the variation in partner country-specific exports and imports, respectively. We next find a substantial concentration of trading firms: in 2017, the top 10% of exporters accounted for 96.6% of all exports, while the top 10% of importers were responsible for 94.6% of all imports. Finally, we match the customs data with other firm-level datasets and estimate the performance premia of exporting firms. Our findings indicate that exporting manufacturing firms outperform non-exporting manufacturing firms in all aspects we consider: sales, value added, the number of employees, the capital-labor ratio, productivity, and wages. Interestingly, the exporter premia of manufacturing firms for value added, labor productivity, and total factor productivity decreased between 2014 and 2016 and then increased until 2019, whereas the exporter premium for the average wage steadily increased.

Clusters in the developing world do, to a large extent, attract low-educated individuals, and these clusters are in some cases, characterized by urbanization without industrialization. This contrasts starkly to clusters in advanced economies that attract high-skilled individuals and entrepreneurs. In this paper, we develop a model of agglomeration and spatial sorting that is consistent with these two types of different agglomeration processes in developed and developing countries. We show that a poor country that has an agglomeration with low skilled individuals, may get stuck in this equilibrium, but that free mobility of human capital from the outset nevertheless is superior from the perspective of total social welfare.

Telework has spread during the pandemic of coronavirus disease (COVID-19). Using a unique individual-level survey in Japan, we investigate how telework has changed the way people live and work and what impediments hamper telework use. As a result, we find that telework allows workers to spend more time on leisure and their families. Compared with routine task workers, non-routine (abstract) task workers are more suited to telework. However, once engaged in telework, non-routine task workers have fewer opportunities to communicate with coworkers, which is a serious impediment that tends to hamper work performance and compromise mental health.