<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Based on the traditional form of the endogenous growth model, and for it to increase the micro-foundation that includes the homogeneous and representative bank resource allocation, this paper constructs an endogenous economic growth model that includes the investment structure of the residential sector and financial deepening. Using China’s prefecture-level data proves that due to the inherent difference between the central planner’s single equilibrium solution and the family’s decentralised equilibrium solution, when the residential sector’s preference for real estate investment causes the investment structure to deviate from the optimal level of society, the increase in the proportion of real estate investment The allocation efficiency of financial resources has a significant inhibitory effect and drags down the realisation of long-term potential economic growth. In the absence of a central planner in a market economy, increasing leverage may not mean financial deepening, but may reduce financial efficiency (FEt) and accumulate systemic financial risks.</p>
</abstract>

Based on the traditional form of the endogenous growth model, and for it to increase the micro-foundation that includes the homogeneous and representative bank resource allocation, this paper constructs an endogenous economic growth model that includes the investment structure of the residential sector and financial deepening. Using China’s prefecture-level data proves that due to the inherent difference between the central planner’s single equilibrium solution and the family’s decentralised equilibrium solution, when the residential sector’s preference for real estate investment causes the investment structure to deviate from the optimal level of society, the increase in the proportion of real estate investment The allocation efficiency of financial resources has a significant inhibitory effect and drags down the realisation of long-term potential economic growth. In the absence of a central planner in a market economy, increasing leverage may not mean financial deepening, but may reduce financial efficiency (FEt) and accumulate systemic financial risks.

Application of regression function model based on panel data in bank resource allocation financial risk management

School of Finance, Chongqing Finance and Economics College

Information Systems, Faculty of Computing and Information Technology

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

Based on the traditional form of the endogenous growth model, and for it to increase the micro-foundation that includes the homogeneous and representative bank...

Dependent variable gi, t-1	Generalised moment estimate 1	Generalised moment estimation 2	Fixed coefficient model	Substitution variable

y_i,t−2	−0.047	−0.049	−0.432	−0.3369
FD_i,t−1	0.071	0.213	0.193	0.1921
H_i,t	−0.114	0.2794	0.563	0.495
H_i,tFD_i,t−1		−0.7829	−1.152	−1.0136

Application of regression function model based on panel data in bank resource allocation financial risk management

Data publikacji: 22 lis 2021

Zakres stron: 181 - 192

Otrzymano: 17 cze 2021

Przyjęty: 24 wrz 2021

DOI: https://doi.org/10.2478/amns.2021.2.00056

Słowa kluczowe
bank resource allocation, endogenous growth model, systemic financial risk, family housing purchase, risk management

© 2021 Tonghui Ji et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Fig. 2

The impact of bank resource allocation on FEt

Application of regression function model based on panel data in bank resource allocation financial risk management

Data publikacji: 22 lis 2021

Zakres stron: 181 - 192

Otrzymano: 17 cze 2021

Przyjęty: 24 wrz 2021

DOI: https://doi.org/10.2478/amns.2021.2.00056

Słowa kluczowebank resource allocation, endogenous growth model, systemic financial risk, family housing purchase, risk management

© 2021 Tonghui Ji et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Fig. 2

The impact of bank resource allocation on FEt

Słowa kluczowe
bank resource allocation, endogenous growth model, systemic financial risk, family housing purchase, risk management