Dr Hiroyuki Nakata

Hiroyuki NakataAssociate Professor in Finance


Room 119, First Floor, Fielding Johnson Building

Tel: +44 (0)116 252 3376

Email: hn66@le.ac.uk


Personal details

I joined the School in November 2014. I earned my PhD (Economics) from Stanford University in 2001, after obtaining my MA and BA in Economics from Kyoto University.

I previously held positions at the Universities of Essex and Tokyo, and have work experience in the banking industry in Japan. I am a Senior Fellow at Japan’s Research Institute of Economy, Trade and Industry (RIETI).


  • MN1017 Foundations of Economics
  • MN2134 Corporate Finance
  • MN2140 Macro-Finance
  • MN7032 Corporate Finance (MSc Finance)

Office hours

Monday 3:30pm-4:30pm and Thursday 4:00pm-5:00pm (Semester two, term time only)

Administrative responsibilities

  • Equalities Officer
  • Programme Leader MSc Finance (Campus Based) (Semester One)
  • Deputy Director of Postgraduate Studies


Peer reviewed journal articles

Self-production, friction, and risk sharing against disasters: Evidence from a developing country,” forthcoming, World Development (with Yasuyuki Sawada and Tomoaki Kotera).

"w-MPS risk aversion and the shadow CAPM: theory and empirical evidence," forthcoming, European Journal of Finance (with Lin Huang and Chenghu Ma).

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

“Informative advertising with spillover effects,” International Journal of Economic Theory, 7 (2011), 373 – 386.

“Equivalent comparisons of information channels,” Theory and Decision, 71 (2011), 559 – 574.

“Communication, correlation of beliefs and asset price fluctuations,” Rivista Internazionale di Scienze Sociali, 2007, No.3, 443 – 469.

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

“Modelling exchange of probabilistic opinions,” Economic Theory, 21 (2003), 697 – 727.

“Spurious deadweight gains,” Economics Letters, 72 (2001), 33 – 37 (with Giovanni Facchini and Peter J. Hammond).

Other research papers

“Demand for non-life insurance: A cross-country analysis,” (with Yasuyuki Sawada), CIRJE discussion paper CIRJE-F-461, University of Tokyo, 2007.

“Endogenous provision of riskless asset and the social costs of volatility,” 2010.

“Entropy characterisation of insurance demand: Theory and evidence,” (with Yasuyuki Sawada and Mari Tanaka), RIETI Discussion Paper 10-E-009, 2010.  (Retitled to “Rare catastrophes and subjective probability: Theory and evidence from Vietnam” for journal submission; submitted)

“Asking retrospective questions in household surveys: Evidence from Vietnam,” (with Yasuyuki Sawada and Mari Tanaka), RIETI Discussion Paper 10-E-008, 2010.

“Self-production and risk sharing against disasters: A case study from Vietnam,” (with Yasuyuki Sawada and Tomoaki Kotera), RIETI Discussion Paper 11-E-017, 2011.

“w-MPS risk aversion and the shadow CAPM: Theory and empirical evidence,” (with Lin Huang and Chenghu Ma), 2014. Submitted.

“Time preference, risk and credit constraints: Evidence from Vietnam,” (with Yasuyuki Sawada) 2014.

“Endogenous business cycles and the social welfare under heterogeneous beliefs – OLG case,” (with Maurizio Motolese) – in progress.

“Endogenous business cycles and the social welfare under heterogeneous beliefs – Infinite horizon,” (with Maurizio Motolese) – in progress.

“Loan monitoring system and bank risk,” (with Norvald Instefjord) – in progress.

Chapters in books

“On the design of regional insurance schemes/mechanisms for east Asia,” in D. Aldrich, Y. Sawada and S. Oum (eds.), Resilience and recovery in Asian disasters: Community ties, market mechanisms, and governance, Springer-Verlag, 2014.

“Kyodaisaigai no hoken mekanizumu (Insurance mechanism for catastrophes),” in Y. Sawada (ed.), Kyodaisaigai: Risuku to Keizai (Catastrophes: Risk and economy), Nikkei Publishing, 2014 (in Japanese).

“Modeling exchange of probabilistic opinions,” in C.D. Aliplantis, K.J. Arrow, P.J. Hammond, F. Kubler, H-M. Wu and N. Yannelis (eds.), Assets, Beliefs and Equilibria in Economic Dynamics, Springer-Verlag, 2003.


  • Microeconomic Theory
  • Financial Economics

In particular, my current research focuses on

(a) the foundations and roles of beliefs (probabilistic and non-probabilistic) on the financial markets and the real economy


(b) the financial instruments and markets (including insurance) against rare disasters.


I am willing to supervise students who are interested in the theoretical aspect of finance or financial economics.

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