Macro Effects of Corporate Restructuring in Japan

Author/Editor:

Se-Jik Kim

Publication Date:

October 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 03/203

Subject:

English

Publication Date:

October 1, 2003

ISBN/ISSN:

9781451874471/1018-5941

Stock No:

WPIEA2032003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

33

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