Collateral Damage: Effects of the Japanese Bank Crisis on Real Activity in the United States

Eric Rosengren () and Joe Peek

American Economic Review, 2000, vol. 90, issue 1, 30-45

Abstract: The Japanese banking crisis provides a natural experiment to test whether a loan supply shock can affect real economic activity. Because the shock was external to U.S. credit markets, yet connected through the Japanese bank penetration of U.S. markets, this event allows us to identify an exogenous loan supply shock and ultimately link that shock to construction activity in U.S. commercial real estate markets. We exploit the variation across geographically distinct commercial real estate markets to establish conclusively that loan supply shocks emanating from Japan had real effects on economic activity in the United States.

JEL-codes: E44 G21 (search for similar items in EconPapers)
Date: 2000
Note: DOI: 10.1257/aer.90.1.30
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Citations: View citations in EconPapers (819)

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