Yoichi Matsubayashi

Tax Incentives for Investment: Evidence from Japan's High-Growth Era

Mariko Hatase, Yoichi Matsubayashi

Tax devices have occasionally been adopted as policy tools to promote economic growth in major industrialized countries after the Second World War. In Japan, various accelerated depreciation schemes under the name 'special depreciation' were employed as major devices to stimulate investments. In …

Monetary Policy Communication of the Bank of Japan: Computational Text Analysis

Yusuke Oshima, Yoichi Matsubayashi

In this study, we empirically examine the effects of the Bank of Japan (BOJ)'s communications through its meeting minutes on the financial markets, especially during Mr. Kuroda's administration from April 2013 to September 2017. Using computational linguistic models and the Latent Dirichlet …

Credit Spread, Financial Market and Real Activities under Financial Instability: Empirical Evidence with MS-SBVAR

Satoshi Tezuka, Yoichi Matsubayashi

The purpose of the paper is to show how widening credit spreads in "unstable periods" influence the primary markets, the lending markets, and production activities, in comparison with stable periods. The MS-SBVAR identifies the 2008 global financial crisis and the 2011 great …

Wage Discrepancy Between Tradable and Non-Tradable Sectors and Real Exchange Rates in Japan: Empirical Evidence with Panel Threshold Model

Takao Fujii, Yoichi Matsubayashi

The Balassa-Samuelson hypothesis incorporates two assumptions: PPP and identical wages between tradable and non-tradable sectors. This study focuses on the latter assumption, the validity of which is hardly verified by previous research. Using panel data, we investigate whether the Balassa-Samuelson effect based …

Dynamic Impact of Credit Risk on the Real Economy in European Countries

Shota Kai, Yoichi Matsubayashi

Using local projection, this study investigates the dynamic effect of credit risk on the real economy in European countries.We obtain credit spread shocks of financial and non-financial institutions in four major eurozone countries by controlling their endogenous changes caused by fear of …

Alternative Resolution to the Mehra?Prescott Puzzle: Verification by the Original Data

Hideaki Tamura, Yoichi Matsubayashi

Many extensive debates followed Mehra and Prescott fs (1985) sensational empirical results concerning the equity premium embodied in household equity portfolios. The problem of the equity premium?the Mehra?Prescott puzzle?arises because researchers overlook the factor of uncertainty in household consumption behaviour, thereby failing …

Quantitative Easing Policy, Exchange Rates and Business Activity by Industry in Japan from 2001-2006

Hiroyuki Ijiri, Yoichi Matsubayashi

This study empirically investigates the dynamic effect of Japan's quantitative easing (QE) policy on industry-specific business activity using a time-varying parameter model and monthly data spanning 2001-2006. This model yields more reliable and precise results than earlier fixed effects models using quarterly …

Development of a Regional DSGE Model in Japan: Empirical Evidence of Economic Stagnation in the Kansai Economy

Mitsuhiro Okano, Daisuke Ida, Shigeto Kitano, Yoichi Matsubayashi

Using a dynamic stochastic general equilibrium model, this study empirically examines Japan’s Kansai Region to ascertain causes of its long-run economic stagnation. Simulations and the empirical investigation demonstrate that stagnant private residential and equipment investments and productivity persistency are structural problems responsible …

Income Uncertainty and Household Consumption : @Empirical Evidence with Survey of Household Economy

Hideaki Tamura, Yoichi Matsubayashi

The effort to stabilise the financial system in Japan: An outline and the characteristics of the Programme for Financial Revivial

Yoichi Matsubayashi

This paper provides an overview of the Programme for Financial Revival announced in October 2002 in Japan. The programme aimed to dramatically reduce the large amount of non-performing loans that remained until the end of the 1990s. In addition to solving the …

The effort to stabilise the financial system in Japan: an outline and the characteristics of the programme for financial revival. Bruegel Working Paper 2015/02, 18 March 2015

Yoichi Matsubayashi

This Working Paper provides an overview of the Programme for Financial Revival announced in October 2002 in Japan. The programme aimed to dramatically reduce the large amount of non-performing loans that remained until the end of the 1990s. In addition to solving …

Welfare Benefits of Capital Controls:The Case of Spain

Shigeto Kitano, Yoichi Matsubayashi

We estimate a small open economy RBC model augmented with a simple form of financial frictions using Spanish data and Bayesian methods. The estimated model matches well with key Spanish business cycle statistics. Using the estimated model, we find that significant welfare …