Should Zombie Be in the Grave? : A Simulation-Based Policy Comparison between Two Types of Economies
AbstractThe aim of this paper is to examine the argument that low productive firms should be closed to make the macroeconomic performance better. It is said that the existence of zombie firms is one of the reason for the stagnation of Japanese economy. The process of creative destruction where the new entries which have higher productivity is not in the right way because of the existence of zombie, that is, "zombie firms prevent more productive companies from gaining market share, strangling a potentially important source of productivity gains for the overall economy (Ahearne and Shinada (2005), p364)." But, if the bankruptcy of one firm affects on the other firms, this argument does not hold because there are firms which are embroiled into the bankruptcy chain. This firm's productivity is not so low that they go into bankruptcy if the whole economic performance is good. Ih this paper, the validity of zombie theory is examined by way of computer simulation with the network economy framework.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Graduate School of Economics and Management, Tohoku University in its series TERG Discussion Papers with number 270.
Length: 13 pages
Date of creation: Aug 2011
Date of revision:
Contact details of provider:
Postal: Kawauchi, Aoba-ku, Sendai 980-8476
Web page: http://www.econ.tohoku.ac.jp/econ/english/index.html
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tohoku University Library).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.