This study aims to examine whether a reserve requirement system constrains bank behavior. In Japan, a system is applied to certain regional banks where required reserve ratios are imposed based on the amount of their deposits. Using a natural experiment, we perform a bunching estimation to...

When identifying trade costs, the assumption of iceberg-type costs causes biases when specific (per-unit) costs exist. Although some studies measure the magnitude of specific costs, they suffer from self-selection bias. Furthermore, studies that account for selection and quality heterogeneity do...