RES327 Week 3 Assignment .docx RES327 Week 3 Assignment Real Estate Economics (RES327)

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RES327 Week 3 Assignment .docx RES327 Week 3 Assignment Real Estate Economics (RES327) The author of the paper tries to determine whether bank credit had an effect on the asset prices. In the 198... 0s Japan loosened the regulations in the financial sector. That deregulation caused keiretsu to obtain financing publicly and did not have to rely on banks as much anymore. That change in keiretsus activities caused banks to find another way to make profit and they did that through lending of real estate. In turn, that caused more and more people to buy land and real estate in Japan since there was so much bank credit available out there. By studying several graphs, tables, and statistics, the author comes to the conclusion that the data he looked at €œsuggests that prefectures whose banks experienced a greater loss in their proportion of keiretsu loans experienced a larger increase in real estate lending, which fueled la. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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