Development and application of a regional economic model with regional banks

2022 Fiscal Year Final Research Report

• Project/Area Number: 19K01668
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07040:Economic policy-related
• Research Institution: Yamagata University
• Principal Investigator: Tamegawa Kenichi 山形大学, 人文社会科学部, 准教授 (80409424)
• Project Period (FY): 2019-04-01 – 2023-03-31
• Keywords: 地方銀行 / リレーションシップバンキング / 労働移動 / 動学的一般均衡モデル

Outline of Final Research Achievements

We first conducted a time-series analysis of monetary policy by using data for banks divided into urban and regional banks. We found that the impact of monetary base expansion on loan balances differed between urban and regional banks. We also constructed a DSGE model incorporating relationship banking. The monopoly power created by banks' monopoly over customer information resulted in underinvestment, which reduced the effectiveness of monetary policy compared to the standard model. Moreover, we constructed a model in which interregional migration is endogenized. A policy that raises attachment about the hometown reduces national output because this policy forces workers to move away from regions with higher productivity.

Free Research Field

マクロ経済学

Academic Significance and Societal Importance of the Research Achievements

地方創生の観点からすれば、「都市」と「地方」を明示的に区別した分析が必要になってくる。この点において、本研究の社会的な意義があると考えられる。学術的には、地方銀行を意識してリレーションシップバンキングをマクロ経済モデルに取り入れたこと、また労働の移動を内生化したことは標準的なモデルの拡張という観点から意義があると考えられる。