We construct new quarterly estimates of lending rates for the 47 Japanese prefectures for the period 1886-1922, and test the extent to which regional capital markets integrated during this period. We analyze whether the Japanese capital market was efficient, estimate the speed of convergence...

One of the purposes cited for establishing the Bank of Japan (BOJ) was to gfacilitate financeh by promoting the nationwide integration of the regional financial markets, which until that point had been divided and functioned independently. Nonetheless, much remains unknown about Japanese...