A Study on Non-linear Relationship between Microeconoimc Productivity and Macroeconomic Performance

2014 Fiscal Year Final Research Report

• Project/Area Number: 24730235
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic policy
• Research Institution: Asahikawa University (2013-2014); Tohoku University (2012)
• Principal Investigator: ASANUMA Daiki 旭川大学, 経済学部, 准教授 (10579965)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: ネットワーク / 連鎖倒産 / 個別企業の生産性 / 経済全体のパフォーマンス

Outline of Final Research Achievements

This study examines the economic theory that low productive firms should be in bankruptcy to improve the aggregate economic performance. This theory is based on hypothesis that each firm is independent from others, that is, a bankruptcy of one firm does not affect others. So, policy makers tend to think that low productive firms should not be helped. However, economic system is composed of networks. All firms are connected with each other. From this point of view, a bankruptcy affects other firms and, at worse, bankrupt a bankrupt avalanche might happen. In that case, each bankruptcy does not necessarily happen because of the low productivity on that firm. When considering the economic policy, a policy to preserve the economic network by helping low productive firms has a valid basis.

Free Research Field

マクロ経済学　金融論