Macro Effects of Corporate Restructuring in Japan

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Price:  $15.00

Author/Editor: Se-Jik Kim
Release Date: © October, 2003
ISBN : 978-1-45187-447-1
Stock #: WPIEA2032003
Stock Status: On back-order

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This paper presents a framework for quantitatively evaluating the macroeconomic effects of corporate restructuring and applies it to Japan. Using firm-level financial statement data, it estimates total factor productivity (TFP) of individual Japanese firms. Given the estimated distribution of productivity across firms, the paper simulates the effect of optimal restructuring, that is, reallocation of resources from less-productive firms to more-productive ones, on the dynamic path of aggregate output. The results show that the benefits of restructuring could substantially exceed the costs.


Economic sectors , Private sector

More publications in this series: Working Papers

More publications by: Se-Jik Kim