TY - JOUR
T1 - Oligopolistic competition in the banking market and economic growth
AU - Hamada, Kojun
AU - Kaneko, Akihiko
AU - Yanagihara, Mitsuyoshi
N1 - Funding Information:
The authors wish to thank Hideya Kato, Hikaru Ogawa, Yoshiaki Ogura, Tsuyoshi Shinozaki, the seminar participants at Monash University in Melbourne, Australia, and an anonymous reviewer for their valuable suggestions. This work was supported in part by a Waseda University Grant for Special Research Projects [No. 2016K-011 ] (Akihiko Kaneko); JSPS KAKENHI Grant Numbers No. 16K03615 and No. 16H03612 (Koju Hamada), No. 17K03727 (Akihiko Kaneko), No. 17K18563 and No. 17K03762 (Mitsuyoshi Yanagihara), and No. 15K03449 (Kojun Hamada, Akihiko Kaneko, and Mitsuyoshi Yanagihara). The authors are solely responsible for any errors. Appendix A
Publisher Copyright:
© 2017 Elsevier Ltd
PY - 2018/1
Y1 - 2018/1
N2 - 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.
AB - 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.
KW - Bank competition
KW - Cournot competition
KW - Endogenous growth
KW - Overlapping generations model
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U2 - 10.1016/j.econmod.2017.07.017
DO - 10.1016/j.econmod.2017.07.017
M3 - Article
AN - SCOPUS:85028510941
VL - 68
SP - 239
EP - 248
JO - Economic Modelling
JF - Economic Modelling
SN - 0264-9993
ER -
