An empirical contribution to Minsky’s financial fragility:Evidence from non-financial sectors in Japan

Hiroshi Nishi

Discussion papers from Graduate School of Economics , Kyoto University

Abstract: This study presents an empirical analysis to detect Minsky’s financial fragility and its determinants in the non- financial sectors in Japan, with particular attention paid to differences between sectors and sizes. While Minsky developed theoretical analyses of financial fragility for use in economic growth models, its empirical application is limited. Based on the financial fragility indices derived from a cash flow accounting framework and Minsky’s margins of safety, I detect the overall configuration and evolution of financial fragility (hedge, speculative, and Ponzi) in Japan. Then, the factors that determine the probability of being Ponzi finance are detected by using panel logistic regression. In doing so, this study reveals that although speculative finance is dominant in many sectors, the evolution of financial fragility is diversified and its determinants differ according to sector and size in Japan.

Keywords: Minsky; Financial fragility; Margin of safety; Japanese economy (search for similar items in EconPapers)
JEL-codes: C25 E12 N15 (search for similar items in EconPapers)
Date: 2016-09
New Economics Papers: this item is included in nep-hme, nep-mac, nep-pke and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-007.pdf (application/pdf)

Related works:
Journal Article: An empirical contribution to Minsky’s financial fragility: evidence from non-financial sectors in Japan (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kue:epaper:e-16-007

Access Statistics for this paper

More papers in Discussion papers from Graduate School of Economics , Kyoto University Contact information at EDIRC.
Bibliographic data for series maintained by Graduate School of Economics Project Center ().