The	  1st	  Sophia	  Research	  Workshop	  in	  Economics,	  29th	  March,	  2017	  	  13:30-­‐13:35	  	  	   	  	   	  Opening	  Remarks	  	  	  	  	  	   	  Chairman:	   	  	   	  	   Tetsuya	  Horie	   	  	  (Sophia	  University,	  Faculty	  of	  Economics)	  	  	  13:40-­‐14:30	  	  	   	  	   	  Kohei	  Kamaga	   	  	  (Sophia	  University,	  Faculty	  of	  Economics)	   	  	   	  	   	  	   	  	  Title:	  "When	  Do	  Utilitarianism	  and	  Egalitarianism	  Agree	  on	  Evaluation?:	  Intersection	  Approach"	  Abstract:	  We	  examine	  the	  range	  of	  the	  agreement	  between	  the	  utilitarian	  social	  welfare	  ordering	  these	  binary	  relations.	  The	  intersection	  of	  these	  SWOs	  is	  seen	  as	  an	  intermediate	  egalitarian	  quasi-­‐ordering	  in	  the	  sense	  that	  it	  is	  an	  extension	  of	  the	  generalized	  Lorenz	  social	  welfare	  quasi-­‐ordering	  (SWQ)	  and	  is	  a	  subrelation	  of	  the	  leximin	  SWO.	  Our	  first	  result	  shows	  that	  the	  intersection	  of	  the	  utilitarian	  and	  leximin	  SWOs	  is	  characterized	  (in	  terms	  of	  subrelation)	  by	  strong	  Pareto,	  anonymity,	  Pigou-­‐Dalton	  equity,	  and	  a	  new	  equity	  axiom	  concerning	  a	  composition	  of	  a	  rank-­‐preserving	  progressive	  utility	  transfer	  and	  a	  rank-­‐preserving	  regressive	  utility	  transfer.	  Further,	  in	  the	  second	  result,	  we	  show	  that	  an	  SWO	  satisfying	  the	  axioms	  of	  separability	  and	  cardinal	  full	  comparability	  in	  addition	  to	  the	  four	  axioms	  is	  either	  the	  leximin	  SWO	  or	  the	  lexicographic	  composition	  of	  the	  utilitarian	  and	  leximin	  SWOs	  which	  applies	  the	  utilitarian	  SWO	  first.	  	  14:40-­‐15:30	  	  	   	  	  	  Takuya	  Hasebe	   	  	  (Sophia	  University,	  Faculty	  of	  Liberal	  Arts)	   	  	   	  	   	  	  Title:	  	  "Copula-­‐based	  Treatment	  Effect	  Estimators	  of	  Count	  Data	  Outcome"	  Abstract:	   	  In	  this	  paper,	  we	  propose	  a	  copula-­‐based	  maximum	  likelihood	  estimator	  of	  a	  switching	  regression	  model	  of	  count	  data	  outcome,	  where	  a	  possible	  outcome	  differs	  across	  two	  alternate	  states	  and	  individuals	  endogenously	  select	  into	  one	  of	  the	  states.	  
Building	  on	  the	  switching	  regression	  model,	  we	  derive	  estimators	  of	  various	  treatment	  effects:	  the	  average	  treatment	  effect	  (ATE),	  the	  average	  treatment	  effect	  on	  the	  treated	  (ATT),	  the	  local	  average	  treatment	  effect	  (LATE),	  and	  the	  marginal	  treatment	  effect	  (MTE).	   	  A	  Monte	  Carlo	  study	  demonstrates	  the	  performance	  of	  our	  proposed	  estimators.	  We	  also	  illustrate	  an	  application	  	  that	  examines	  the	  effects	  of	  physician	  advice	  on	  alcohol	  consumption,	  using	  the	  data	  employed	  by	  previous	  studies.	  	  15:30-­‐16:00	  	  	   	  	  	  Break	  	  	  	  	  	   	  Chairman:	   	  	   	  	   Naoaki	  Minamihashi	   	  	  (Sophia	  University,	  Faculty	  of	  Economics)	  	  	  16:00-­‐16:50	  	  	   	  	  	  Michiru	  Kosaka	  	  	  (Sophia	  University,	  Faculty	  of	  Liberal	  Arts)	   	  	   	  	   	  	   	  	  Title:	   	  "The	  Real	  Effects	  of	  Carry	  Trade"	  (with	  Hernan	  Seoane)	  Abstract:	  We	  study	  the	  impact	  of	  carry	  trade	  investment	  strategies	  in	  emerging	  small	  open	  economies.	  We	  empirically	  quantify	  the	  differences	  of	  the	  correlations	  between	  the	  carry	  trade	  return	  and	  macroeconomic	  variables	  in	  developed	  and	  emerging	  economies.	  Observing	  that	  there	  are	  significant	  differences,	  we	  build	  VAR	  models	  which	  include	  the	  measure	  of	  carry	  trade	  activity	  and	  macroeconomic	  variables	  of	  Mexico	  and	  Canada.	  Next,	  using	  the	  data	  of	  the	  balance	  of	  payments	  	  and	  cross-­‐border	  borrowing	  and	  lending,	  we	  explore	  the	  differences	  of	  the	  nature	  of	  net	  capital	  flows	  triggered	  by	  the	  carry	  trade	  investment	  in	  these	  economies.	  	  In	  this	  presentation,	  our	  plan	  of	  the	  DSGE	  modelling	  will	  be	  also	  discussed.	  	  	  17:00-­‐17:50	  	  	   	  	   	  Masashige	  Hamano	  	  	  (Sophia	  University,	  Faculty	  of	  Economics)	   	  	   	  	   	  	   	  	   	  	  	  Title:	   	  "International	  Transmission	  and	  Risk	  Sharing	  through	  Product	  Quality	  Changes"	  Abstract:	   	  This	  paper	  explores	  the	  role	  played	  by	  product	  quality	  together	  with	  product	  variety	  in	  international	  transmission	  mechanism	  and	  international	  risk	  sharing.	  We	  built	  a	  two-­‐country	  DSGE	  model	  that	  embodies	  endogenous	  choice	  of	  product	  quality	  by	  heterogeneous	  firms.	  In	  our	  calibrated	  model,	  quality	  upgrading	  or	  downgrading	  of	  exporting	  goods	  has	  a	  sizable	  impact	  on	  international	  welfare	  transmission.	  In	  addition	  it	  generates	  a	  wealth	  transfer	  that	  reconciles	  consumption-­‐real	  exchange	  rate	  anomaly	  under	  incomplete	  financial	  markets.	  For	  the	  latter	  we	  find	  supportive	  evidence	  with	  a	  panel	  data	  set.	  	  18:00-­‐18:50	  	  	   	  	   	  	  Francesco	  Zanetti	  	  	  (The	  University	  of	  Oxford,	  Department	  of	  Economics)	  Title:	   	  "State	  Dependence	  in	  Labor	  Market	  Fluctuations:	  Evidence,	  Theory	  and	  Policy	  Implications"	  Abstract:	   	  This	  paper	  documents	  a	  novel	  stylized	  fact:	  the	  volatility	  in	  the	  unemployment	  rate	  and	  the	  job	  separation	  rate	  is	  larger	  in	  periods	  with	  low	  aggregate	  productivity.	  A	  Diamond-­‐Mortensen-­‐Pissarides	  model	  with	  endogenous	  job	  separation	  and	  on-­‐the-­‐job	  search	  replicates	  reasonably	  well	  these	  empirical	  regularities.	  Endogenous	  job	  separation	  embeds	  powerful	  state	  dependence,	  and	  the	  volatility	  of	  the	  job	  separation	  rate	  is	  larger	  in	  states	  with	  low	  aggregate	  productivity	  and	  in	  response	  to	  contractionary	  shocks.	  State	  dependence	  introduces	  critical	  differences	  in	  the	  timing	  of	  labor	  market	  reforms	  enacted	  at	  distinct	  states	  of	  aggregate	  productivity.	  A	  permanent	  removal	  of	  layoff	  taxes	  is	  welfare	  enhancing	  in	  the	  long	  run,	  but	  it	  involves	  distinct	  costs	  across	  states	  of	  productivity	  in	  the	  short	  run.	  Welfare	  losses	  are	  more	  than	  twice	  as	  large	  when	  the	  reform	  is	  enacted	  in	  periods	  with	  high	  aggregate	  productivity.	  	  18:50-­‐19:00	  	  	   	  	   	  	  Closing	  Remarks