-firm lending data. We decompose loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks …

. Little attention is paid in Japan to substitution biases and quality upgrading. This implies that important methodological … differences have emerged between the U.S. and Japan since the U.S. started to correct for these biases in 1999. We estimate that … using the new corrected U.S. methodology, Japan's deflation averaged 1.2 percent per year since 1999. This is more than …

for 40 regions of Japan. Our results identify important effects of a region’s own size, as well as cost linkages between … spread evenly over the 40 regions of Japan, aggregate output would fall by 5 percent. – markets ; regions ; productivity …