Macro Effects of Corporate Restructuring in Japan

Se-Jik Kim

No 2003/203, IMF Working Papers from International Monetary Fund

Abstract: This paper presents a framework for quantitatively evaluating the macroeconomic effects of corporate restructuring and applies it to Japan. Using firm-level financial statement data, it estimates total factor productivity (TFP) of individual Japanese firms. Given the estimated distribution of productivity across firms, the paper simulates the effect of optimal restructuring, that is, reallocation of resources from less-productive firms to more-productive ones, on the dynamic path of aggregate output. The results show that the benefits of restructuring could substantially exceed the costs.

Keywords: WP; firm; financial statement data; th firm; Corporate restructuring; total factor productivity; macro effects; Japan; restructured firm; firm well; percent firm; firms in Japan; distribution of productivity; Productivity; Labor share; Personal income (search for similar items in EconPapers)
Pages: 33
Date: 2003-10-01
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Citations: View citations in EconPapers (3)

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