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Development of a Regional DSGE Model in Japan: Empirical Evidence of Economic Stagnation in the Kansai Economy

Author

Listed:
  • Mitsuhiro OKANO

    (Asia Pacific Institute of Research)

  • Daisuke IDA

    (Asia Pacific Institute of Research)

  • Shigeto KITANO

    (Asia Pacific Institute of Research)

  • Yoichi MATSUBAYASHI

    (Asia Pacific Institute of Research)

Abstract

Using a dynamic stochastic general equilibrium model, this study empirically examines Japan’s Kansai Region to ascertain causes of its long-run economic stagnation. Simulations and the empirical investigation demonstrate that stagnant private residential and equipment investments and productivity persistency are structural problems responsible for Kansai’s unique economic fluctuations.

Suggested Citation

  • Mitsuhiro OKANO & Daisuke IDA & Shigeto KITANO & Yoichi MATSUBAYASHI, 2015. "Development of a Regional DSGE Model in Japan: Empirical Evidence of Economic Stagnation in the Kansai Economy," APIR Discussion Paper Series 1004265, Asia Pacific Institute of Research.
    • Handle: RePEc:aps:wpaper:1004265
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    File URL: http://www.apir.or.jp/ja/research/files/2015/04/DP38_Kansai_DSGE.pdf
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    References listed on IDEAS

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    Keywords

    Kansai economy; Area DSGE; productivity; residential investment;

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