Macroeconomic effects of fiscal policy under endogenous market structure

• Project/Area Number: 15H06524
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Single-year Grants
• Research Field: Economic theory
• Research Institution: Aomori Public College
• Principal Investigator: Takao Kizuku 青森公立大学, 経営経済学部, 講師 (10755680)
• Research Collaborator: Futagami Koichi 大阪大学, 経済学研究科, 教授 (30199400) ; Lai Ching-Chong Institute of Economic Research, Academia Sinica, Distinguished Research Fellow
• Project Period (FY): 2015-08-28 – 2017-03-31
• Project Status: Completed (Fiscal Year 2016)
• Budget Amount: ¥2,990,000 (Direct Cost: ¥2,300,000、Indirect Cost: ¥690,000); Fiscal Year 2016: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000); Fiscal Year 2015: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
• Keywords: マクロ経済学 / 財政金融政策 / 市場構造 / 資産価格 / 産業組織論 / 経済成長論 / 経済成長 / 研究開発投資

Outline of Final Research Achievements

This research examines macroeconomic effects of fiscal policies and the relationships between asset bubbles and economic growth in the presence of an endogenous market structure. The key feature is that there are two-dimensional investment opportunities: quality improvement of existing goods and the creation of a new product. This leads to variation in the scale of production at the level of individual firm for any given aggregate market size. Therefore, any economic policy potentially has not only direct effects on the intensity of investments by incumbent firms but also secondary effects through endogenous variations in firm sizes.
First, I show that even if a fiscal policy is effective for economic growth and social welfare from a long-term perspective, it leads to macroeconomic instabilities and for some situations it triggers short-run slowdowns in economic growth. Second, I propose a new theoretical channel through which the presence of asset bubbles can promote economic growth.

Research Products

• [Journal Article] Asset Bubbles and Economic Growth under Endogenous Market Structure (2017)
  • Author(s): Kizuku Takao
  • Journal Title: Macroeconomic Dynamics Volume: 印刷中
  • Peer Reviewed / Acknowledgement Compliant
• [Journal Article] Mixed Duopoly: Differential Game Approach (2017)
  • Author(s): Koichi Futagami, Toshihiro Matsumura, Kizuku Takao
  • Journal Title: Discussion Papers In Economics, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University Volume: 17-03 Pages: 1-53
  • Open Access / Acknowledgement Compliant
• [Presentation] Fiscal Policy and Transitional Dynamics in a Schumpeterian Model with Step-by-Step Innovation (2017)
  • Author(s): Takaaki Morimoto and Kizuku Takao
  • Organizer: The Singapore Economic Review Conference (SERC) 2017
  • Place of Presentation: the Mandarin Orchard Singapore
  • Year and Date: 2017-08-02
  • Int'l Joint Research
• [Presentation] Mixed Duopoly: Differential Game Approach (2017)
  • Author(s): Koichi Futagami, Toshihiro Matsumura, Kizuku Takao
  • Organizer: 関西学院大学-KIER シンポジウム 「グローバル化と不確実性の経済分析」
  • Place of Presentation: 関西学院大学
  • Year and Date: 2017-01-07
• [Presentation] Mixed Duopoly: Differential Game Approach (2016)
  • Author(s): Koichi Futagami, Toshihiro Matsumura, Kizuku Takao
  • Organizer: 43rd Annual Conference of the European Association for Research in Industrial Economics (EARIE 2016)
  • Place of Presentation: LISBON, PORTUGAL, Nova School of Business and Economics
  • Year and Date: 2016-08-26
  • Int'l Joint Research
• [Presentation] Mixed Duopoly: Differential Game Approach (2016)
  • Author(s): Koichi Futagami, Toshihiro Matsumura, Kizuku Takao
  • Organizer: 第8回マクロ政策分析研究会, 法政大学比較経済研究所プロジェクト
  • Place of Presentation: 青森大学
  • Year and Date: 2016-08-08
• [Presentation] Asset Bubbles, Endogenous Growth, and Firm size (2015)
  • Author(s): 高尾 築
  • Organizer: KIER共同研究プロジェクト研究会「不確実性の資産価格および資産蓄積への影響」
  • Place of Presentation: 高知工科大学
  • Year and Date: 2015-10-10