| Project/Area Number |
23530369
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Nara University of Education |
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Principal Investigator |
MORI Nobuhiro 奈良教育大学, 教育学部, 教授 (40190996)
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| Co-Investigator(Kenkyū-buntansha) |
OKAMURA Makoto 広島大学, 社会(科)学研究科, 教授 (30177084)
TOMODA Yasunobu 神戸市外国語大学, 外国語学部, 准教授 (30437280)
OGURA Yoshiaki 早稲田大学, 政治経済学術院, 准教授 (70423043)
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| Project Period (FY) |
2011 – 2013
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| Project Status |
Completed (Fiscal Year 2013)
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| Budget Amount *help |
¥4,940,000 (Direct Cost: ¥3,800,000、Indirect Cost: ¥1,140,000)
Fiscal Year 2013: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2012: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
Fiscal Year 2011: ¥2,080,000 (Direct Cost: ¥1,600,000、Indirect Cost: ¥480,000)
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| Keywords | 有担保融資 / 無担保融資 |
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| Research Abstract |
We examine how financial loans influence the cost functions of firms and market equilibrium, from the standpoint of industrial organization. In our model, a representative entrepreneur chooses secured or unsecured loans. The interest rate of the former is relatively low because of its collateral, but it comes with a borrowing constraint. The latter has a high interest rate stemming from a risk premium. Owing to the cost minimization by firms, these loan types affect the cost function of the entrepreneur and the output of the market.
As the main results, in a short-run equilibrium, the existence of two types of financial loans leads to a discontinuous supply curve, and the possibility of non-existence of market equilibrium. If we assume a free-entry condition in the long-run, firms that choose unsecured loans and pay the risk premium cannot survive due to the severe competition stemming from free entry. We obtain a unique equilibrium in which all entrepreneurs choose secured loans.
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