Field of Research

Macroeconomics

Research Topics

Macroeconomic analysis, focusing on financial market and financial system.

Overview of Research 

I am currently conducting research on effects of a decline in a fertility rate and a rise in longevity on an economy through different risky activities of the young and of the old.

Many countries such as Japan, Germany, and Italy experience the demographic change, exhibiting a decline in the fertility rate and a rise in longevity.

How such demographic changes affect an economy? Can an economy experiencing population aging attain sustainable growth?  To answer these questions is an important problem for us, since we conduct economic activities under such demographic changes. Let me consider deeply this problem.

Technological progress and capital accumulation are major factors that affect economic growth. Activities that promote technological progress and capital accumulation are necessarily associated with various risks. Who should take these risks for economic growth with population aging? Should the young take these risks? Or should the old take these risks?

Some empirical studies show that the willingness to take risks declines as individuals are older. The above issues give us the following questions:

Will an aging society take no risks? If so, is it difficult for such an economy to promote risky activities, capital accumulation, and economic growth?

In the study I conduct currently, we develop a macroeconomic model, where the old individuals are more risk averse than young individuals and each the young and the old engage in risky activities. This study shows that both a rise in longevity and a decline in the fertility rate hinder capital accumulation in an economy where old individuals are much more risk averse than young individuals. This study also shows that if old individuals take more risks, such an aging economy accumulate more capital.

In the above study, I conduct the macroeconomic analysis, focusing on the financial market. I am also conducting research on the effects of capital adequacy requirements such as Basel III on a country whose financial market has developed (or has not developed), incorporating financial intermediaries’ behavior into a macroeconomic model.

SUNAGA, Miho
Assistant Professor
Degree: Ph.D. in Economics (Osaka University)
sunaga@osipp.osaka-u.ac.jp