IDEAS home Printed from
   My bibliography  Save this paper

Empirical Analysis of the Crowding out Occurring in Corporate Finance (Japanese)


  • SHOJI Keishi


This paper verifies the real effects of fiscal consolidation using the empirical model built upon the theoretical explanations about the real effects of public debt accumulation elaborated in Shoji (2013), and it aims at identifying the mechanism of the economic stagnation characterized by low interest rates, which has been an unsolved mystery pertaining to the Japanese economy. This article, in particular, focuses on the crowding out that arises due to credit constraints in corporate finance. The results of this study show that an accumulation of government debt has negative impacts on the real economy through (i) disturbing the supply of funds to the private sector, (ii) discouraging capital investment by leading to a rise in real interest rate or a fall in the expected return, and (iii) reducing public investment by leading to financial rigidity. Furthermore, the results highlight the implication that the effects of monetary policy are limited. These results highlight the implication of the necessity of fiscal consolidation.

Suggested Citation

  • SHOJI Keishi, 2013. "Empirical Analysis of the Crowding out Occurring in Corporate Finance (Japanese)," Discussion Papers (Japanese) 13041, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:rdpsjp:13041

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:13041. See general 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: (KUMAGAI, Akiko). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.