Institute of Economic Research, Kyoto University
For Advanced Economic Analysis
There has been fresh development in the field of empirical analysis, which frames economic activity in terms of quantitative data and performs statistical analysis to clarify the behavioral principles of economic agents and the laws of motion of economics. As the growth of computing power has enabled efficient statistical analysis of large volumes of data, microeconomic data on households and businesses is being analyzed in relation to theories of economic agent behavior. This is the emerging field of microeconometric analysis, where remarkable progress has been made in using panel data with simultaneous time-variant and cross-sectional components, and in developing analytical techniques for qualitative data that are not quantitatively describable. Collecting and maintaining microeconometric data, from such sources as surveys and pseudo-panels, will have increasing importance in the future. Our research is designed to contribute to the development of the field of microeconometric analysis by combining econometric theory with applied microeconomics and applied microeconometric analysis of data from fields such as labor economics, corporate finance, industrial organization and environmental economics.
The methods at the core of empirical macroeconomic analysis are time series analysis of macroeconomic data attributes, and calibration of macroeconomic models through comparisons of simulated data with actual economic data. The goal of macroeconometric analysis research area is exploring the linkages between time series-based econometric theory, macroeconomic theory and empirical macroeconomic analysis in order to further develop the cutting-edge field of macroeconometric analysis.
There have also been striking developments recently in the use of experimental methods in economics. Our research is designed to develop the field of experimental economics by utilizing experimental economics and field survey techniques, mainly in the area of environmental issues.
Systems Analysis involves the design, comparison and assessment of economic systems from a broad view, on the basis of theoretical and empirical studies of various economic and social systems in comparison to models such as the market system. The processes through which systems form, develop and change are verified from a dynamic perspective. These techniques are supplemented with research that draws on methods and knowledge in politics, history, sociology, and technical science.
Organizational Analysis uses contract theory and other typical methods of economic analysis, which can now be applied to not only business organizations but many kinds of organizations and phenomena, to analyze the internal structure, formation and differentiation of organizations, and relationships between them. Feedback from empirical findings is also emphasized. Strong linkages with related fields, such as business management and law, are anticipated.
Trade and Growth Analysis is based on the theory of imperfect competition, contract theory, and organizational theory, and is applied to a wide range of multinational corporations and national growth records. Empirical research is conducted on international trade and foreign direct investment, using theoretical findings and company-level microdata to assess the impacts of financial policies on economic growth. Deepening of both the theoretical and empirical approaches holds great promise for research on trade and growth.
The game theory research embraces personal decision-making theory, which remains at the leading edge of economic theory, as well as various strategy theories and their methodologies. The department’s work has been published and otherwise shared with international colleagues. The research is designed to strengthen theoretical foundations and applications in the areas of decision-making theory incorporating findings from behavioral economics; systematic analysis of games of incomplete information; the problems of infinite-horizon dynamic game theory; and cooperative game theory.
The research on market economy strategy views markets in the broadest sense, and includes analyzing the strategic behavior of businesses, consumers, governments, etc., investigating methods for evaluating market performance, and comparing the results of competition policies.
Research on environment and public policy applies strategy analysis to key topics of global economics including fiscal and monetary policy, international economics, and environmental economics, building on the legacy of the predecessor Public Policy Department. The main purposes are prompt preparation of proposals and assessments for flexible policies, and systematic analysis of the strategic topics common to all fields, which are the foundation of policy.
Another goal is to analyze what measures will be required to prevent recurrence of the factors and risks that were exposed in the crisis. Emphasis is also placed on risk management in organizations. The specific research areas are risk management, market quality, mathematical finance, financial econometric analysis, and international financial economics. Additional research is under way on economic revitalization and countermeasures against future risks to the Japanese economy, in close collaboration with the other KIER divisions.