The Degree of Competition on the Cost Frontier and Intertemporal Regular Linkages in the Japanese Banking Industry

2021 Fiscal Year Final Research Report

• Project/Area Number: 19K01733
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07060:Money and finance-related
• Research Institution: University of Toyama
• Principal Investigator: Homma Tetsushi 富山大学, 学術研究部社会科学系, 教授 (60241775)
• Project Period (FY): 2019-04-01 – 2022-03-31
• Keywords: 動学的費用非中立的効率性 / 動学的価格非効率 / 一般化使用者収入モデル / 一般化使用者収入価格 / 拡張された一般化ラーナー指数 / 効率性仮説 / 平穏仮説 / 異時点間規則的連鎖

Outline of Final Research Achievements

Based on the generalized user-revenue model, this paper clarifies the empirical implications of the quiet-life hypothesis in the Japanese regional banking industry. The quiet-life hypothesis is accepted here but the efficient structure hypothesis is not. Moreover, the extended generalized-Lerner index (EGLI) on the cost frontier increases with the Herfindahl index in the previous period if and only if the quiet-life hypothesis is accepted, so it is possible to justify anti-monopoly and anti-concentration policies using support for the quiet-life hypothesis. Furthermore, intertemporal regular linkages (i.e., cyclical linkages) exist because the average loans are not large and only the quiet-life hypothesis is accepted. However, the linkage of the single-period EGLIs of the long-term loans on the cost frontier leads to convergence and is fixed at the very large values in the initial periods; thus, the linkage is judged to be undesirable to Japanese regional banks.

Free Research Field

銀行業の産業組織論的研究

Academic Significance and Societal Importance of the Research Achievements

本研究の学術的意義は，動学的費用効率性及び動学的価格非効率を明示的に考慮可能なように発展させた一般化使用者収入モデルに基づきながら，地方銀行における平穏仮説の実証的インプリケーションを明らかにしている点にある．特に，平穏仮説とフロンティア上の拡張された一般化ラーナー指数（EGLI）との関係，フロンティア上の単一期間EGLIにおける異時点間規則的連鎖の存在と平穏仮説との関係はこれまで考えられてこなかったものである．このため，本研究の成果は内外の金融業（とりわけ銀行業）の産業組織政策及び独占禁止政策に大きな影響を与えるものと期待される．