Federal Dposit InsuranceCorporation• Center for Financial Researchh
Sanjiv R. Das
Darrell Duffie
Nikunj Kapadia
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
FDIC Center for Financial Research
Working Paper
No. 2011-08
Local Economic Effects of a Government - Owned Depository
Institution: Evidence from a Natural Experiment in Japan
July 2011
Empirical Comparisons and Implied Recovery Rates
kkk
An Empirical
An Empirical Analysis
State-
Efraim Benmel Efraim Benmelech May, 2005
June 20
May , 2005 Asset S2005-14
September 2005
Sanjiv R. Das
Darrell Duffie
Nikunj Kapadia
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
Risk-Based Capital Standards,
Deposit Insurance and Procyclicality
FDIC Center for Financial Research
Working Paper
No. 2011-08
Local Economic Effects of a Government - Owned Depository
Institution: Evidence from a Natural Experiment in Japan
July 2011
Empirical Comparisons and Implied Recovery Rates
kkk
An Empirical
An Empirical Analysis
State-
Efraim Benmel Efraim Benmelech May, 2005
June 20
May , 2005 Asset S2005-14
September 2005
1
Local Economic Effects of a Government-Owned Depository Institution: Evidence from a
Natural Experiment in Japan*
Masami Imai**
Abstract
Beginning in 2000, Japan’s postal saving system experienced a rapid outflow of funds as a large
number of 10-Year Postal Saving Certificates were maturing. This paper exploits this episode as
a natural experiment in order to investigate the effects of a government-owned depository
institution on local economic performance. The results show that the prefectures in which local
funds were more heavily invested in the postal saving system in the early 1990s tended to
experience a larger shift of funds away from the postal saving system and that these prefectures
performed better in terms of output and small business creation in the early 2000s.
JEL Classification Codes: G21, G28
Key Words: Government-owned banks, Postal saving system, Japan
* The author gratefully acknowledges financial support from the Henry R. Luce Foundation, the Mellon Foundation,
Federal Deposit Insurance Corporation’s Center for Financial Research, and research grants from Wesleyan
University. The author is grateful to Philip Strahan (editor), two anonymous referees, Richard Grossman, Yoshiaki
Ogura, George Pennacchi, Paul Kupiec, Carlos Ramirez, Fabio Baggion, Leonard Nakamura, David Weinstein,
Hugh Patrick, and participants at Japan Economic Seminar (Columbia University), Federal Deposit Insurance
Corporation, Center for Security Prices Forum (University of Chicago), Western Economics Association
International Conference, and 2nd CEPR-EBC-UA Conference on Competition in Banking Markets for insightful
comments, and Yashan Zhou and Maiko Kondo for excellent research assistance. The author is responsible for all
errors and omissions. Earlier drafts of this paper were circulated with the title of “Real Effects of Finance: Evidence
from a Natural Experiment in Japan.”
** Department of Economics, Wesleyan University, PAC 123, 238 Church Street, Middletown, CT 06459-0007,
860-685-2155 (phone), 860-685-2301 (fax), mimai@wesleyan.edu (e-mail)
Local Economic Effects of a Government-Owned Depository Institution: Evidence from a
Natural Experiment in Japan*
Masami Imai**
Abstract
Beginning in 2000, Japan’s postal saving system experienced a rapid outflow of funds as a large
number of 10-Year Postal Saving Certificates were maturing. This paper exploits this episode as
a natural experiment in order to investigate the effects of a government-owned depository
institution on local economic performance. The results show that the prefectures in which local
funds were more heavily invested in the postal saving system in the early 1990s tended to
experience a larger shift of funds away from the postal saving system and that these prefectures
performed better in terms of output and small business creation in the early 2000s.
JEL Classification Codes: G21, G28
Key Words: Government-owned banks, Postal saving system, Japan
* The author gratefully acknowledges financial support from the Henry R. Luce Foundation, the Mellon Foundation,
Federal Deposit Insurance Corporation’s Center for Financial Research, and research grants from Wesleyan
University. The author is grateful to Philip Strahan (editor), two anonymous referees, Richard Grossman, Yoshiaki
Ogura, George Pennacchi, Paul Kupiec, Carlos Ramirez, Fabio Baggion, Leonard Nakamura, David Weinstein,
Hugh Patrick, and participants at Japan Economic Seminar (Columbia University), Federal Deposit Insurance
Corporation, Center for Security Prices Forum (University of Chicago), Western Economics Association
International Conference, and 2nd CEPR-EBC-UA Conference on Competition in Banking Markets for insightful
comments, and Yashan Zhou and Maiko Kondo for excellent research assistance. The author is responsible for all
errors and omissions. Earlier drafts of this paper were circulated with the title of “Real Effects of Finance: Evidence
from a Natural Experiment in Japan.”
** Department of Economics, Wesleyan University, PAC 123, 238 Church Street, Middletown, CT 06459-0007,
860-685-2155 (phone), 860-685-2301 (fax), mimai@wesleyan.edu (e-mail)