Constructing a Small-Region DSGE Model

Tamegawa, Kenichi

doi:10.1155/2013/825862

Cited by 4 publications

(7 citation statements)

References 21 publications

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“…However, this study has no practical value. Further, the studies of Kenichi Tamegawa [5,29] can be noted. We should underline the following important result of the study: "the fiscal multiplier depends on which government (local or central) implements the fiscal policy and where the policy is implemented" [5] (p. 249).…”

Section: Dsge Methods In Regional Development Researchmentioning

confidence: 99%

Constructing a Region DSGE Model with Institutional Features of Territorial Development

2022

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The growing importance of regional units in national economies gives rise to the objective need to improve the tools of spatial management. The construction of realistic development scenarios and forecasts is possible on the basis of the DSGE models’ tools. At the same time, models of a similar class that describe socio-economic processes at the level of the regional economy are practically not represented in modern studies. The purpose of the paper is to build a model of the regional economy based on DSGE tools. A feature of the proposed model is the consideration of spatial features through budget expenditures on the digitalization of such areas as healthcare and education. The high importance of these costs became evident during the COVID-19 crisis, when the consequences of underfunding IT costs in education and healthcare led to slowing economic growth. We have allocated health and education expenses in the standard budget limit of the regional government. On the basis of the developed model, response functions for shocks of exogenous variables for 20 periods were built. The result of the simulation is the response functions of endogenous variables in response to the fading growth in the share of spending on human capital in the region, as well as the obtained values of elasticities for a single change in shocks.

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Section: Dsge Methods In Regional Development Researchmentioning

confidence: 99%

Constructing a Region DSGE Model with Institutional Features of Territorial Development

2022

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“…In relation to the works of Tamegawa (2012), Tamegawa (2013), and Okano et al (2015), the proposed theoretical framework presented here differs in the following aspects: in contrast to the Tamegawa (2012) model, our model incorporates an agent coordinating monetary policy. This feature is important because monetary policy tends to generate rebates in consumption, investments, productive structure, and subnational finance.…”

Section: Review Of the Literaturementioning

confidence: 99%

Measuring national policy impacts in a region: SAMBA+REG

Penna,

Osterno,

Barreto

et al. 2023

Estud. Econ.

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This article presents an empirical methodology for analyzing the propagation of aggregate shocks across regions. While focusing on the specific case of Brazil and Ceará, the proposed methodology can be easily adapted to examine other regions as well. We develop a dynamic model, termed SAMBA+REG, which complements the Central Bank of Brazil’s dynamic stochastic general equilibrium model (SAMBA) by incorporating regional elements. This theoretical framework allows us to explore how aggregate shocks impact a specific region. We conduct simulations using fiscal and monetary shocks and the results align with the existing literature. SAMBA+REG not only facilitates the evaluation of the effects of central government economic policies on a regional economy, but also offers insights into various strategies for state governments to respond effectively to these policies.

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“…Economists and central banks frequently use DSGE models to analyze macroeconomies and to evaluate economic policy [6]. During the past decade, DSGE models have been gaining popularity and become the standard framework for monetary policy, economic fluctuation, and economic forecasting.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Until now, however, there is no consensus on which kind of rule is better in DSGE frameworks to characterize China's macroeconomic policy. Kenichi Tamegawa [6] pointed out that small regions' policy makers need an effective small-region DSGE model to evaluate their policies, or they will be forced to use traditional macroeconomy models. Because the Hainan economic system has the characteristics of small-scale and regionalization, we try to develop a small-region DSGE model to research it.…”

Section: Literature Reviewmentioning

confidence: 99%

A Sustainable Economic System to Face the Fluctuation of Fruit Prices: Based on a Small-Region DSGE Model

Fang

Pan

2021

Discrete Dynamics in Nature and Society

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This paper builds a new small-scale and regionalization DSGE model that focuses on the sustainable economic system, which was estimated by the Bayesian estimation method using Chinese annual data from 2004 to 2017 to analyze the effect of the fluctuation of fruit prices in Hainan. We find the fluctuation of increasing prices has a negative effect on fruit output. This results in a preference to loosen monetary policy to reduce this influence and then results in price inflation, which will lead to the increase in output and prices simultaneously. Based on our findings, we provide suggestions for policy maker such as the optimization of industrial structures and increased investment in the fruit industry, extending the fruit industry chain and establishing a multifruit industry sustainable economic system.

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Constructing a Small-Region DSGE Model

Cited by 4 publications

References 21 publications

Constructing a Region DSGE Model with Institutional Features of Territorial Development

Constructing a Region DSGE Model with Institutional Features of Territorial Development

Measuring national policy impacts in a region: SAMBA+REG

A Sustainable Economic System to Face the Fluctuation of Fruit Prices: Based on a Small-Region DSGE Model

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