The Bank of Japan as a Real Estate Tycoon: Large-Scale REIT Purchases

Takahiro Hattori () and Jiro Yoshida
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Takahiro Hattori: Hitotsubashi University

No GRU_2020_003, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit

Abstract: This is the first study analyzing the Bank of Japan’s purchases of real estate investment trusts (REITs) that started in 2010 as part of enhanced unconventional monetary policy. The Bank purchases REIT shares after observing a significantly negative return over the previous night and during the morning market. The Bank continues purchases daily until the overnight and morning REIT returns become positive. This counter-cyclical behavior is consistent with the objective of decreasing risk premia and stimulating spending. Our study sheds light on the unique program of a central bank’s equity purchases.

Keywords: large-scale asset purchases (LSAP); quantitative easing (QE); central banking; real estate investment trust; unconventional monetary policy (search for similar items in EconPapers)
JEL-codes: E52 E58 G12 R33 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2020-03-17
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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https://www.cb.cityu.edu.hk/ef/doc/GRU/WPS/GRU%232020-003%20Yoshida.pdf (application/pdf)

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Chapter: The Bank of Japan as a real estate tycoon: large-scale REIT purchases (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cth:wpaper:gru_2020_003

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