Policy Research Domains (Major Policy Research Domains) I. Maintaining Economic Dynamism under the Adverse Demographic Conditions of Low Fertility and Aging Population

Stabilization Policy under Market Incompleteness

Project Leader/Sub-Leader


NAKAJIMA Tomoyuki Faculty Fellow



2008 - 2009

As the global financial crisis persists, the gap in income and wage differentials in Japan and other countries continues to expand. While the labor system constitutes an important issue in income disparity, from a macroeconomic perspective, "market incompleteness" is also thought to be a major cause in the increasing disparity. This project examines how market incompleteness affects overall business conditions (through inefficiency in the labor markets) and considers the possibility that macroeconomic policies (stabilization policies) under conditions of market incompleteness can have a greater impact than previously assumed.

September 29, 2008 - September 30, 2009

Major Research Results


RIETI Discussion Papers