Deregulation and Market Response in Contemporary Japan: Administrative Guidance, 'Keiretsu,' and Main Banks

35 Pages Posted: 21 Sep 2004

See all articles by Yoshiro Miwa

Yoshiro Miwa

Osaka Gakuin University

J. Mark Ramseyer

Harvard Law School

Date Written: March 2004

Abstract

Change is in the air in Japan, claim many observers: The government is radically deregulating crucial sectors of the economy, the large firms are unwinding their keiretsu corporate groups, and firms and banks are dismantling their main bank arrangements. Some observers see all three as exogenous institutional shocks, while others treat the last two as behavioral responses to the first. In fact, although the first phenomenon would constitute an institutional change if it occurred, it has not - for Japanese bureaucrats had no substantial regulatory power to abandon. Although the last two would constitute market responses if they occurred, they have not either - for firms and banks maintained no groups or main-bank arrangements to unwind or dismantle.

JEL Classification: B14, G32, G21, G38, K23, L43, L52

Suggested Citation

Miwa, Yoshiro and Ramseyer, J. Mark, Deregulation and Market Response in Contemporary Japan: Administrative Guidance, 'Keiretsu,' and Main Banks (March 2004). Harvard Law and Economics Discussion Paper No. 462. Available at SSRN: https://ssrn.com/abstract=593527 or http://dx.doi.org/10.2139/ssrn.593527

Yoshiro Miwa (Contact Author)

Osaka Gakuin University ( email )

2-36-1 Kishibe-Minami
Suita, Osaka 5645811
Japan

J. Mark Ramseyer

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States
617-496-4878 (Phone)
617-496-6118 (Fax)

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