Macro Effects of Corporate Restructuring in Japan

October 1, 2003

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Format: Chicago

Se-Jik Kim. Macro Effects of Corporate Restructuring in Japan, (USA: International Monetary Fund, 2003) accessed September 19, 2024

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.

Subject: Labor, Labor share, National accounts, Personal income, Production, Productivity, Total factor productivity

Keywords: Corporate restructuring, Distribution of productivity, Financial statement data, Firm, Firm well, Firms in Japan, Japan, Labor share, Macro effects, Percent firm, Personal income, Productivity, Restructured firm, Th firm, Total factor productivity, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/203
Stock No:

WPIEA2032003
ISBN:

9781451874471
ISSN:

1018-5941

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