Ownership Structure and Corporate Performance in Japan / Frank R. Lichtenberg, George M. Pushner.

Format:

Book

Author/Creator:

Lichtenberg, Frank R.

Contributor:

National Bureau of Economic Research.

Pushner, George M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4092.

NBER working paper series no. w4092

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1992.

Summary:

This paper develops a dynamic continuous-time model in which international risk sharing can yield substantial welfare gains through its positive effect on expected consumption growth. The mechanism linking global diversification to growth is an attendant world portfolio shift from safe, but low-yield, capital into riskier, high-yield capital. The presence of these two types of capital is meant to capture the idea that growth depends on the availability of an ever-increasing array of specialized, hence inherently risky, production inputs. A partial calibration exercise based on Penn World Table consumption data implies steady-state welfare gains from global financial integration that for some regions amount to several times initial wealth.

Notes:

Print version record

June 1992.