Economic Conditions and Japanese Firm Financing

This paper investigates the role played by non-financial firms in Japanese corporate financing. We find that non-financial firms are an important source of credit for both small and large firms in Japan. We also document that adverse real and financial shocks have similar effects on small and large firm financing. The primary implication of our results is that credit from the non-financial private sector in Japan serves to lessen the adverse impact of real and financial shocks on the economy.Business Cycles

Does the Expectation Hypothesis Hold at the Shortest End of the Term Structure?

This paper examines the predictability smile at the shortest end of the term structure. The existence of a predictability smile has been well documented: spreads between long rates and short rates are able to forecast subsequent movements in interest rates well, provided the horizon is three months or less or two years or more. The predictive power of the spread at the shortest maturities, however, has not been adequately investigated. This is a potential shortcoming of the existing literature as a projection of the predictability smile to the shorter maturities is not a guarantee that the expectations hypothesis holds. In Japan, a positive spread between the forward and the spot rates has insufficient predictive power for the future spot rate innovations, while a negative spread has near-perfect predictive ability. Further, we provide evidence that this result is not unique to Japan, as we find this "asymmetric predictability" to be a feature of the very short-term money markets of the U.S., U.K. and Italy.Term Structure, Predictability, Money Market

Bank liabilities and the monetary transmission mechanism

Using two sources of data on commercial bank liabilities we examine the behavior of various components of deposits following a monetary tightening (downturn) as well as a nonmonetary downturn equal in magnitude to the monetary downturn in order to better understand the portfolio behavior of commercial banks. We find that the increase in total deposits during a monetary tightening (when output is low and interest rates are high) is attributable to an increase in small time deposits and that large time deposits and demand deposits exhibit a decrease. This suggests that banks are able to, at least partially, offset the potentially adverse effects of a monetary tightening on their balance sheet by borrowing and raising additional small time deposits. Further, non-monetary downturns, when both interest rates and output are low, seem to have little effect on the liability position of banks.

The Effectiveness of Public Credit Guarantees in the Japanese Loan Market

This paper examines the effectiveness of public credit guarantee programs in not only increasing the availability of loans to small and medium enterprises (SMEs), but in also improving the ex-post performance of borrowing firms. Using a unique panel data set, we identify the effects of a massive credit guarantee program implemented by the Japanese government from 1998-2001. While we do find that the availability of loans increased for program participants, when loans were provided by undercapitalized banks the increased liquidity persisted for only a few years. Further, the ex-post performance of program participants, with the exception of firms with sizable net worth, deteriorated relative to their non-participating counterparts.Credit crunch, Small and Medium Enterprises, Loan guarantees, Matching estimation

Calculations of Electric Capacitance in Carbon and BN Nanotubes, and Zigzag Nanographite (BN, BCN) Ribbons

Electronic states in nanographite ribbons with zigzag edges are studied using the extended Hubbard model with nearest neighbor Coulomb interactions. The electronic states with the opposite electric charges separated along both edges are analogous as nanocondensers. Therefore, electric capacitance, defined using a relation of polarizability, is calculated to examine nano-functionalities. We find that the behavior of the capacitance is widely different depending on whether the system is in the magnetic or charge polarized phases. In the magnetic phase, the capacitance is dominated by the presence of the edge states while the ribbon width is small. As the ribbon becomes wider, the capacitance remains with large magnitudes as the system develops into metallic zigzag nanotubes. It is proportional to the inverse of the width, when the system corresponds to the semiconducting nanotubes and the system is in the charge polarized phase also. The latter behavior could be understood by the presence of an energy gap for charge excitations. In the BN (BCN) nanotubes and ribbons, the electronic structure is always like of semiconductors. The calculated capacitance is inversely proportional to the distance between the positive and negative electrodes.Comment: 4 pages; 6 figures; related: http://staff.aist.go.jp/k.harigaya

Electronic Properties of Topological Materials: Optical Excitations in Moebius Conjugated Polymers

Electronic structures and optical excitations in Moebius conjugated polymers are studied theoretically. Periodic and Moebius boundary conditions are applied to the tight binding model of poly(para-phenylene), taking exciton effects into account. We discuss that oligomers with a few structural units are more effective than polymers for observations of effects of discrete wave numbers that are shifted by the change in boundary condition. Next, calculations of optical absorption spectra are reported. Certain components of optical absorption for an electric field perpendicular to the polymer axis mix with absorption spectra for an electric field parallel to the polymer axis. Therefore, the polarization dependences of an electric field of light enable us to detect whether conjugated polymers have the Moebius boundary.Comment: 10 pages, 6 figures, to be published in J. Phys. Soc. Jpn., Vol. 74 No. 2 (February, 2005), Letter sectio