Paying for the FILP
This paper examines the financial health of the Fiscal Investment and Loan Program (FILP) as of the end of March 2001. We study the financial conditions of FILP recipients, which include public corporations and local governments. We find many are de facto insolvent. Our estimates suggest as much as 75% of the FILP loans are bad. The expected losses are estimated to be about ?75 trillion (over 15% of GDP). We also studied the effects of the FILP reform of April 2001, which tries to introduce market discipline in allocation of FILP funds. No significant changes in financial flow are detected, yet. The financial market seems to differentiate the newly introduced FILP agency bonds, which are supposed to without government guarantee, from government guaranteed bonds. It is too early to tell, however, whether the financial market will become an effective monitor of FILP agencies.
|Date of creation:||Dec 2002|
|Publication status:||published as Paying for the FILP , Takero Doi, Takeo Hoshi. in Structural Impediments to Growth in Japan , Blomström, Corbett, Hayashi, and Kashyap. 2003|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey I. Bernstein & M. Ishaq Nadiri, 1989.
"Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality,"
Review of Economic Studies,
Oxford University Press, vol. 56(2), pages 249-267.
- Jeffrey I. Bernstein & M. Ishaq Nadiri, 1986. "Research and Development and Intraindustry Spillovers: An Empirical Application of Dynamic Duality," NBER Working Papers 2002, National Bureau of Economic Research, Inc.
- Bernstein, Jeffrey I. & Nadiri, M. Ishaq, 1988. "Research and Development and Intraindustry Spillovers: An Empirical Application of Dynamic Duality," Working Papers 88-06, C.V. Starr Center for Applied Economics, New York University.
- "Iwamoto, Yasushi", 2001. "Fiscal Investment and Loan Program―A Perspective on Government Interventions in the Japanese Financial Sector―," Economic Review, Hitotsubashi University, vol. 52(1), pages 2-15, January.
- Iwamoto, Yasushi, 2002. "The Fiscal Investment and Loan Program in Transition," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 583-604, December.
- Yasushi Iwamoto, 2002. "The Fiscal Investment and Loan Program in Transition," CIRJE F-Series CIRJE-F-168, CIRJE, Faculty of Economics, University of Tokyo.
- Takeo Hoshi & Anil Kashyap, 2004. "Corporate Financing and Governance in Japan: The Road to the Future," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582481, January. Full references (including those not matched with items on IDEAS)