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A DSGE Model for Shiniking Cities in Korea
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한국의 축소도시현상에 대한 DSGE 모형분석

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Type
Academic journal
Author
Journal
한국계량경제학회 계량경제학보 계량경제학보 제28권 제2호 KCI Accredited Journals
Published
2017.1
Pages
1 - 28 (28page)

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A DSGE Model for Shiniking Cities in Korea
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The goal of this paper is to develop a dynamic stochastic general equilibrium model for declining urban cities in Korea. The need for the DSGE model analysis to account for shrinking citie in Korea can be justified for the following two reasons. First, rises and falls of individual cities reflect multi-lateral interactions of different cities in Korea. Second, both idiosyncratic factors of individual cities and macroeconomic factors play important roles in the determination of the population distribution across different cities in Korea. It is shown that the deepening of shrinkage of small Korean cities can arise during the transition period toward the long-term steady state with a low rate of economic growth.

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