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The authors would like to thank Tuan Chyau, Takamune Fujii, Fukunari Kimura, Akira Kohsaka, Naoki
Murano, Takanobu Nakajima, Linda F. Y. Ng, Eiji Ogawa, Eric Ramstetter, and participants of a seminar at
Keio University, the annual meeting of the Japanese Economic Association, the 8th convention of the East
Asian Economic Association, the 1st international conference of the Japan Economic Policy Association,
and anonymous referees for their helpful comments. Kozo Kiyota would like to thank the Nomura
Foundation for providing nancial support for this project. However, all remaining errors are those of
authors alone.
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https://onlinelibrary.wiley.com/doi/epdf/10.1111/j.1467-9701.2004.00664.x 1/3