The 1990s in Japan: A Lost Decade

Fumio Hayashi and Edward Prescott

Review of Economic Dynamics, 2002, vol. 5, issue 1, 206-235

Abstract: This paper examines the Japanese economy in the 1990s, a decade of economic stagnation. We find that the problem is not a breakdown of the financial system, as corporations large and small were able to find financing for investments. There is no evidence of profitabkle investment opportunities not being exploited due to lack of access to capital markets. The problem then and still today is a low productivity growth rate. Growth theory, treating TFP as exogenous, accounts well for the Japanese lost decade of growth. We think that research effort should be focused on what policy change will allow productivity to again grow rapidly. (Copyright: Elsevier)

Keywords: growth model; TFP; Japan; workweek. (search for similar items in EconPapers)
JEL-codes: E13 E2 O4 O5 (search for similar items in EconPapers)
Date: 2002
Note: A data appendix is available
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (500)

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Related works:
Chapter: The 1990s in Japan: a lost decade* (2004)
Working Paper: Data Appendix to The 1990s in Japan: A Lost Decade (2002)
Working Paper: The 1990s in Japan: a lost decade (2000)
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DOI: 10.1006/redy.2001.0149

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