Deregulation and Market Response in Contemporary Japan: Administrative Guidance, 'Keiretsu,' and Main Banks
35 Pages Posted: 21 Sep 2004
Date Written: March 2004
Abstract
Change is in the air in Japan, claim many observers: The government is radically deregulating crucial sectors of the economy, the large firms are unwinding their keiretsu corporate groups, and firms and banks are dismantling their main bank arrangements. Some observers see all three as exogenous institutional shocks, while others treat the last two as behavioral responses to the first. In fact, although the first phenomenon would constitute an institutional change if it occurred, it has not - for Japanese bureaucrats had no substantial regulatory power to abandon. Although the last two would constitute market responses if they occurred, they have not either - for firms and banks maintained no groups or main-bank arrangements to unwind or dismantle.
JEL Classification: B14, G32, G21, G38, K23, L43, L52
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Takeo Hoshi, Anil K. Kashyap, ...
-
Do Banking Shocks Affect Borrowing Firm Performance? An Analysis of the Japanese Experience
By Jun-koo Kang and René M. Stulz
-
Zombie Lending and Depressed Restructuring in Japan
By Ricardo J. Caballero, Takeo Hoshi, ...
-
Zombie Lending and Depressed Restructuring in Japan
By Ricardo J. Caballero, Takeo Hoshi, ...
-
The Japanese Banking Crisis: Where Did it Come from and How Will it End?
By Takeo Hoshi and Anil K. Kashyap
-
The Japanese Banking Crisis: Where Did it Come from and How Will it End?
By Takeo Hoshi and Anil K. Kashyap
-
Banks, Ownership Structure, and Firm Value in Japan
By Randall Morck, Anil Shivdasani, ...
-
Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan
By Joe Peek and Eric S. Rosengren
-
Impacts of the Basle Capital Standard on Japanese Banks' Behavior