Hiroyuki Nakata

Hiroyuki Nataka
Professor, Development Financial Economics
Keywords: Microeconomic Theory, Financial Economics
Lab webpage


PhD in Economics (Stanford University)

Current research topics

  • The roles of finance and insurance under diverse expectations

  • Welfare measures under diverse expectations

Selected publications

  • Countering public opposition to immigration: The impact of information campaigns. European Economic Review, 141, 103959, (2022) (with Giovanni Facchini and Yotam Margalit)

  • Short and long recall errors in retrospective household surveys: Evidence from a developing country. Journal of Development Studies, 55, 2232‒2253 (2019), (with Yasuyuki Sawada and Mari Tanaka)

  • Self-production and risk sharing against disasters: Evidence from a developing country. World Development, 94, 27‒37, (2017) (with Yasuyuki Sawada and Tomoaki Kotera)

  • Welfare effects of short-sale constraints under heterogeneous beliefs. Economic Theory, 53, 283‒314 (2013)

  • A model of financial markets with endogenously correlated rational beliefs. Economic Theory, 30, 431‒452 (2007)


The financial system provides households and firms with the means to transfer and share risk and to allocate resources over time, leading to poverty reduction and/or economic development. The system, however, tends to be unstable as past financial crises show, affecting the real economy adversely – in particular, the developing countries and the poor. The instability may well have been propagated by diverse expectations. Also, diverse expectations inevitably cause a conflict between the ex ante and ex post evaluations, making welfare measurement a serious challenge. This is a serious problem, since policies that require international cooperation such as poverty reduction or climate change policies typically involve diverse views, and the lack of an accepted welfare measure makes international cooperation very difficult. My research group are therefore mainly studying the following themes both theoretically and empirically: a) The roles of finance and insurance under diverse expectations; b) Welfare measures under diverse expectations.