| Outline of Final Research Achievements |
In this research, we have completed and further developed the estimation method of demand and supply function that does not use instrumental variables, We further developed the estimation method of market size with less constraints than the conventional method. Furthermore, it we showed that the demand function of the random coefficient logit type (BLP type) can be estimated without the need for variation in market size, which was impossible with the logit type demand function.
Furthermore, this study estimated the deposit demand function of the American financial institutions. The estimated elasticity of deposits to the interest rate are consistent with the profit maximization of oligopoly companies. I contrast, if we used the instrumental variables, the coefficient of the deposit interest rate coefficient is estimated to have an unreasonable negative value, which renders the results to be unreliable.
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