Keiichiro Kobayashi

Learn More
In the formative stages of their businesses, entrepreneurs have to provide incentives for employees to protect, rather than steal, the source of organizational rents. We study how the entrepreneur's response to this problem determines the organization's internal structure, growth, and its eventual size. Large, steep hierarchies will predominate in(More)
We are grateful to Masaya Sakuragawa, Kotaro Tsuru, two anonymous referees, seminar participants at Sophia University and the International Monetary Fund, and many staff members at the Bank of Japan for their helpful comments on an earlier draft. The paper has benefited from the excellent research assistance of Hiroki Yoshino. Tomoki Tanemura kindly(More)
The boom-bust cycles such as the episode of thè`Internet bubble'' in the late 1990s may be described as the business cycle driven by changes in expectations or news about the future. We show that such news-driven cycles can be reproduced by models with collateral constraint. We assume that an asset with fixed supply (``land'') is used as collateral, and(More)
This paper proposes a simple model that formalizes a variant of Ohanian's (2001) conjecture explaining the productivity declines observed in the Great Depression. If a large payment shock like an asset-price collapse renders many firms insolvent, other economic agents become exposed to a higher risk of not being paid (payment uncertainty). The payment(More)
A news-driven business cycle is a business cycle in which positive news about the future causes a current boom defined as simultaneous increases in consumption, labor, investment, and output. Standard real business cycle models do not generate it. In this paper, we find that a fairly popular market friction, sticky prices, can be a source of a news-driven(More)
Views expressed in Working Paper Series are those of the authors and do not necessarily reflect those of the Bank of Japan or Research and Statistics Department. Views expressed in Working Paper Series are those of the authors and do not necessarily reflect those of the Bank of Japan or Research and Statistics Department. Views expressed in Working Paper(More)
Kobayashi, Nakajima, and Inaba (2007) show that in the neoclassical business cycle models with collateral constraints, a boom can be generated in response to an optimistic change in expectations on the future state of the economy. They call this business cycle a news-driven cycle. In their models, land is used as collateral, and borrowing for working(More)
Business cycle accounting rests on the insight that the prototype neoclassical growth model with time-varying wedges can achieve the same allocation generated by a large class of frictional models: equivalence results. Equivalence results are shown under general conditions about the process of wedges while it is often specified to be the first order vector(More)