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We develop a Q model of investment with multiple capital goods that delivers a one-to-one relation between the growth rate of the capital aggregate and the stock market-based Q. We estimate the growth-Q relation using a panel of over six hundred Japanese manufacturing firms taking into account...
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, highlighting the experience of Japan. By a host of criteria, Japan appeared to be in a stronger position than most countries at the …. However, Japan followed a clear international boom-and-bust pattern in terms of real output growth, credit growth and stock … macroeconomic variables and institutional characteristics. The model predicts a high probability of banking sector distress in Japan …
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Detailed macroeconomic data to accompany the article in the Review of Economic Dynamics
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This paper examines the Japanese economy in the 1990s, a decade of economic stagnation. We find that the problem is not a breakdown of the financial system, as corporations large and small were able to find financing for investments. There is no evidence of profitabkle investment opportunities...
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