Macro Effects of Corporate Restructuring in Japan
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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. 2003/203
Subject:
Labor Labor share National accounts Personal income Production Productivity Total factor productivity
English
Publication Date:
October 1, 2003
ISBN/ISSN:
9781451874471/1018-5941
Stock No:
WPIEA2032003
Pages:
33
Please address any questions about this title to publications@imf.org