2014 Volume 70 Issue 5 Pages I_151-I_159
The purpose of this paper is to develop the SCGE model for finely-divided regions in order to conduct positive analysis and estimate economic impacts. In our study, the model deals with 2,342 cites in Japan and takes into account inter-regional freight transport, commuting and capital flows between each city.
In the positive analysis, the developed model is applied to the case of Great East Japan Earthquake. The damage of the earthquake is expressed as decrease in the production efficiency of firms, which is assumed to be equivalent to the rate of capital stock decrease in the inland and coast regions in the suffered area, i.e., Iwate, Miyagi, Fukushima, and Ibaraki Prefecture. The result shows not only that large economic damage has occurred in these suffered areas, but also that the economic damage has affected all East Japan and industrial areas of Chubu, Kinki, Chugoku and Kyushu District.
