Oligopolistic competition in the banking market and economic growth
| Autor: | Akihiko Kaneko, Kojun Hamada, Mitsuyoshi Yanagihara |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
050208 finance Endogenous growth theory media_common.quotation_subject 05 social sciences Monetary economics Overlapping generations model Cournot competition Interest rate Competition (economics) Market economy 0502 economics and business Economics Growth rate 050207 economics Productivity Imperfect competition media_common |
| Zdroj: | Economic Modelling. 68:239-248 |
| ISSN: | 0264-9993 |
| Popis: | We investigate how banks' degree of imperfect competition affects economic growth. This study explores an imperfect competition model in banking in an overlapping generations model with endogenous growth. We demonstrate the following results. First, an increase in the deposit interest rate increases the steady growth rate of the economy. Second, as competition among banks intensifies, the economic growth rate increases. Third, it is ambiguous as to whether a higher lending interest rate caused by an increase in productivity results in a higher economic growth rate. In our numerical exercises, we exemplify the possibility that an increase in the lending interest rate increases the growth rate. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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