Nagano, Mamoru (2010): The Effect of Easing Monetary Policy in Regional Lending Markets in Japan.
Download (223kB) | Preview
This paper investigates the factors that support a funding demand increase in regional economies under easing monetary conditions. The following results were empirically obtained on the basis of individual firms and the 47 regional data in the 2000s in Japan. The first result is that funding demand regionally increases where the relative size of private capital stock is large. This result suggests that industrial agglomeration complements easing monetary policy to induce regional funding demand. The second result is that regional banking soundness in lending markets also contributes to an increase in the funding demand. This suggests that another possible requirement of the money suppliers must be fulfilled to induce the regional funding demand.
|Item Type:||MPRA Paper|
|Original Title:||The Effect of Easing Monetary Policy in Regional Lending Markets in Japan|
|English Title:||The Effect of Easing Monetary Policy in Regional Lending Markets in Japan|
|Keywords:||Regional Policy, Regional Banking Market, Monetary Policy|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Mamoru Nagano|
|Date Deposited:||23. Sep 2010 15:09|
|Last Modified:||11. Feb 2013 17:38|
Beare, J. B. (1976), “A Monetarist Model of Regional Business Cycles,” Journal of Regional Science 16, pp.57-63.
Carlino, G. and R. DeFina, (1995), “Regional Income Dynamics,” Journal of Urban Economics 37, pp. 88-106.
Carlino, G. and R. DeFina, (1998), “The Differential Regional Effects of Monetary Policy,” The Review of Economics and Statistics 80, pp.572-587.
Carlino, G. and R. DeFina, (1999), “The Differential Regional Effects of Monetary Policy: Evidence from the United States.,” Journal of Regional Science 39, pp.339-358.
Bernanke, B., S. and A. S. Blinder, (1988), “Credit, Money and Aggregate Demand,” American Economic Review, Papers and Proceedings 78, pp. 435-439.
Bernanke, B., S. (1993), “Credit in the Macroeconomy,” Federal Reserve Bank of New York Quarterly Review, spring 1993, pp. 50-70.
Frantantoni, M. and S. Schuh, (2003), “Monetary Policy, Housing, and Heterogeneous Regional Markes,” Journal of Money, Credit, and Banking, Vol. 35, No. 4. pp. 557-589.
Garrison, C. B., and H. S. Chang, (1979), “The Effects of Monetary Forces in Regional Economic Activity,” Journal of Regional Science 19, pp. 15-29.
Gertler, M., and S. Gilchrist, (1993), “The Role of Credit Market Imperfections in Monetary Transmission Mechanism: Arguments and Evidence,” Scandinavian Journal of Economics, 95, pp. 43-64.
Hori, M. and H. Kotaki, (2003), “Bank Soundness and the Regional Economy: Evidence from Regional Data ,” (in Japanese) ESRI Discussion Paper No. 38.
Hosono, K. (2006), “The Transmission Mechanism of Monetary Policy in Japan: Evidence from Banks’ Balance Sheets,” Journal of the Japanese and International Economies, 20, pp. 380-405.
Ishikawa, T., (2000), “Long-term Trend of Private and Social Capital Stock in 47 Prefectures,” NLI Research Report, Vol. 15., pp.1-39.
Kashyap, A. K. and J. C. Stein, (1994), “The Impact of Monetary Policy on Bank Balance Sheets,” National Breau of economic Research, Working Paper 4821.
Mathur, V. and S. Stein, (1980), “Regional Impacts of Monetary and FiscalPolicy: An Investigation into the Reduced Form Approach,” Journal of Regional Science 20, pp.343-351.
Moore, C. L. and J. M. Hill, (1982), “Interregional Arbitrage and the Supply of Loanable Funds,” Journal of Regional Science, 22, pp. 499-512.
Lee, M. H. and M. Nagano, (2008), “Market Competition Before and After Bank Merger Wave: A Comparative Study of Korea and Japan”, Pacific Economic Review, Issue 5, Volume 13. Pp.604-619.
Noma, K., (2007), “Bank Performance and the Regional Economy: Some Considerations for the Financial Deepening in Regional Economies,” Y. Tsutsui and S. Uemura eds., Relationship Banking and Regional Banking System, Toyokeizai-Shimposha.
Oliner, S., and G. D. Rudebusch (1995), “Is There a Bank Lending Channel for Monetary Policy?” Federal Reserve Bank of San Francisco Economic Review, p.2-21.
Owyang, M. T. and H. J. Wall, (2005), “Structural Breaks and Regional Disparities in the Transmission of Monetary Policy,” Working Paper 2003-008C Federal Reserve Bank of St. Louis.
Schunk, D. L., (2003), “The Differential Impacts of Monetary Policy: Are the differences Dimnishing?,” Papers in Regional Science Vol. 84., Issue 1, pp. 127-136.
Toal, W. D. (1977), “Regional Impacts of Monetary and Fiscal Policies in the Postwar Period: Some Initial Tests,” Federal Reserve Bank of Atlanta Working Paper.
Uchida, H. and Y. Tsutsui, (2005) "Has Competition in the Japanese Banking Sector Improved?," Journal of Banking & Finance, vol. 29(2), pages 419-439, February.