Book contents
- Frontmatter
- Contents
- List of contributors
- Acknowledgments
- Chapter 1 Editor's summary
- Chapter 2 The corporate cost of capital in Japan and the United States: a comparison
- Chapter 3 The taxation of income from capital in Japan
- Chapter 4 Corporate tax burden and tax incentives in Japan
- Chapter 5 A closer look at saving rates in the United States and Japan
- Chapter 6 The Japanese current-account surplus and fiscal policy in Japan and the United States
- Chapter 7 Curing trade imbalance by international tax coordination
- Chapter 8 Picking losers: public policy toward declining industries in Japan
- Chapter 9 Corporate capital structure in the United States and Japan: financial intermediation and implications of financial deregulation
- Chapter 10 The Japanese bureaucracy in economic administration: a rational regulator or pluralist agent?
- Chapter 11 Japan's energy policy during the 1970s
- Chapter 12 Industry structure and government policies in the U.S. and Japanese integrated-circuit industries
Chapter 2 - The corporate cost of capital in Japan and the United States: a comparison
Published online by Cambridge University Press: 07 October 2009
- Frontmatter
- Contents
- List of contributors
- Acknowledgments
- Chapter 1 Editor's summary
- Chapter 2 The corporate cost of capital in Japan and the United States: a comparison
- Chapter 3 The taxation of income from capital in Japan
- Chapter 4 Corporate tax burden and tax incentives in Japan
- Chapter 5 A closer look at saving rates in the United States and Japan
- Chapter 6 The Japanese current-account surplus and fiscal policy in Japan and the United States
- Chapter 7 Curing trade imbalance by international tax coordination
- Chapter 8 Picking losers: public policy toward declining industries in Japan
- Chapter 9 Corporate capital structure in the United States and Japan: financial intermediation and implications of financial deregulation
- Chapter 10 The Japanese bureaucracy in economic administration: a rational regulator or pluralist agent?
- Chapter 11 Japan's energy policy during the 1970s
- Chapter 12 Industry structure and government policies in the U.S. and Japanese integrated-circuit industries
Summary
Introduction
Very high real interest rates and a trade deficit that exceeded $100 billion in 1984 have caused much concern over the ability of American firms to keep up with their foreign competitors. A great deal of the discussion of this topic has focused particularly on Japan, because Japan alone accounted for a large fraction of this enormous overall 1984 trade deficit through its success in exporting to the United States goods once supplied primarily by domestic producers.
Attempts to explain this favorable Japanese performance have taken many forms. Some have suggested that Japan may have imposed barriers to American firms’ attempts at establishing markets – through explicit policy actions, or by means of collusion among government, producers, distributors, and banks, or because of lack of faith in the quality of U.S.- produced goods. Others have argued that the U.S. trade imbalance is the inevitable result of our elevated real exchange rate, which makes American goods more expensive than those of our trading partners. This high real exchange rate is, in turn, attributed by many to the unprecedented peacetime fiscal deficits currently being experienced.
Although each of these potential explanations may be important, there is a third on which we focus in this chapter: the cost of capital.
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- Publisher: Cambridge University PressPrint publication year: 1988
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